From 2025, the tax authorities will introduce significant changes in how VAT is processed and collected. This modernization aims to simplify administrative procedures, speed up VAT processing, and strengthen compliance controls. What does this mean for businesses? Below is a summary of the key changes.
1. Elimination of the VAT current account and introduction of the VAT provision account
Until now, VAT debts and credits were managed through a VAT current account. Starting in May 2025, this system will be replaced by the VAT Provision Account, a new digital tool that allows businesses to track and manage their VAT credits. Only payments and credits will be recorded, while outstanding debts and penalties will be handled separately. The account will be accessible via MyMinFin, where businesses can monitor their balances, make payments, and request refunds.
2. Stricter control of missing VAT returns
Companies failing to submit their VAT returns on time will face quicker enforcement. The tax authorities will introduce an automated replacement return: if a VAT return is not filed, an estimated tax return will be generated based on previous filings, with a minimum charge of €2,100. Businesses can challenge this amount by submitting the correct return within the set deadline.
3. Faster VAT credit refunds
A positive change is the faster refund process for VAT credits. Monthly VAT filers will now receive monthly refunds, rather than quarterly. Refunds will be managed directly through the VAT Provision Account, eliminating unnecessary administrative formalities.
4. Extended deadlines for quarterly returns
Starting in 2025, businesses filing quarterly VAT returns will benefit from extended deadlines. Returns and payments will now be due by the 25th of the month following the quarter, instead of the 20th.
5. Stricter penalties and fines
Penalties for late or missing VAT filings will become more severe:
6. Direct debit for VAT payments
From 2026, businesses will be able to automate VAT payments via direct debit. This option will help prevent late payments and avoid unnecessary penalties.
What actions should businesses take?
The modernization of the VAT chain brings efficiency improvements but also new obligations. While automation and digitization will simplify compliance, businesses must adapt their processes to avoid costly fines.
Our mission in the field of corporate taxation is to help you manage a reasonable tax burden that aligns with your income and the opportunities provided by tax legislation.
