Regulation exigibility of VAT reversed

Regulation exigibility of VAT reversed

The new regulation concerning the exigibility of VAT has caused disquiet. Despite all preparations, this regulation, imported in the law of December 17th 2012, has not been applied yet. Complexity, uncertainty and major changes to the accounting software caused much resentment.

Because of the many objections, the Cabinet decided to turn back the new regulation and revise and improve the previous exigibility rules, without having to make major adjustments to the accounting software, unlike the settlement of 2012. It is expected that the revised regulation, after adoption of the draft, will apply from January 1st 2016.

In the revised regulation the exigibility of VAT for a B2B relationship is determined by the date on the invoice. This applies to all invoices, including provision notes. If there is no invoice, the fifteenth of the month following the delivery or service performance will be used as date of exigibility.

In a B2C relationship, the situation remains unchanged; VAT remains due on the date of collection, no matter the invoice date. When it concerns a B2G relationship in the revised regulation the VAT only has to be paid after the government agency has paid. As a result, companies do not have to finance the VAT.

CICERO supports both the old and the new situation. For our customers, these developments will therefore have little or no impact. In the short term, more concrete information will be announced. We will keep you informed.

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