The Belgian Minister of Finance has issued a press release announcing following the example of its neighbouring countries, the optional submission to the vat regime will apply to the letting of immovable property to professionals. This neutral situation to the tenant also allows the deduction of VAT on the construction of the building, if relevant.

According to the Belgian Minister of Finance on the one hand, this implies that lower rental princes can be offered, given the significant tax reductions on construction costs, and on the other hand, that it is no longer necessary to set up complex tax arrangements for tax optimization purposes.

In addition to the economic advantages, According to the Belgian Minister the measure also provides an important contribution to the simplification of the vat legislation, and helps in the fight against tax fraud.

In the press release it’s emphasized that only contracts entered into as from January 1, 2018 are eligible for the scheme. According to the press release the scheme explicitly excludes the regularization of past contracts.

Copyright – internationaltaxplaza.info

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