Belgium’s newly formed federal government has announced plans to implement near real-time VAT reporting by 2028. This initiative is part of a broader tax policy shift aimed at improving entrepreneurship and competitiveness. The new system is designed to combat VAT fraud and will work alongside the mandatory e-Invoicing obligation that takes effect in 2026.
What businesses need to prepare for
Companies operating in Belgium will need to adjust their systems to comply with the new reporting framework. The key elements include:
- Integration of cash registers, payment, and invoicing systems: Businesses will need to ensure their financial systems can transmit VAT data automatically to the tax administration.
- Mandatory e-Invoicing from 2026: Electronic invoices will become the standard, laying the groundwork for more efficient VAT reporting.
- Removal of yearly client listing requirements: This change aims to ease administrative burdens while ensuring better compliance through real-time reporting.
How real‑time reporting combats VAT fraud
The automatic transmission of VAT data will allow Belgian tax authorities to optimize data mining and conduct more efficient audits. By reducing manual reporting and potential errors, the system is expected to minimize opportunities for fraud.
Key takeaways
- Belgium will introduce near real-time VAT reporting by 2028.
- Businesses must integrate financial systems with the tax administration.
- E-invoicing will become mandatory from 2026.
- Yearly client listing requirements will be abolished.
- The initiative aims to reduce VAT fraud and streamline compliance.
Companies should start evaluating their current invoicing and payment systems to ensure they are ready for the transition.
