Author: Yonah De Waegeneer

As of 1 May 2026, the tax authorities are taking a new step in the modernisation of the VAT system. The current VAT current account will be discontinued and replaced by the VAT advance account.

This change forms part of a broader digitalisation project of the FPS Finance, which has been gradually rolled out since 1 January 2025. The aim is to make VAT more transparent and to ensure a more efficient and flexible collection and refund process.

What is the VAT advance account?

The VAT advance account can be seen as a digital bank account with the FPS Finance in which certain VAT amounts of your company are held.

This account includes, among others:

• VAT credits resulting from periodic VAT returns for which no refund was requested (or for which the refund conditions were not met);
• Advance payments made by you, for example in anticipation of a future periodic VAT return.

The first VAT returns that will fall under the new system are:

• the April 2026 VAT return for monthly filers;
• the second quarter 2026 VAT return for quarterly filers.

Automatic offsetting by the VAT authorities

A key difference compared to the current VAT current account is that payable amounts and requested refunds will no longer be shown on the advance account.

The advance account will only display the available advance balance. This balance is primarily used for the automatic settlement of VAT debts.

The FPS Finance may use this balance in various situations:

• Upon submission of the periodic VAT return:
  to settle the amount due, including any late payment interest and penalties.
• In the case of a substitute return drawn up by the authorities:
  to settle the outstanding debt (including interest).
  
  

At the end of each quarter:
to automatically collect all undisputed VAT debts for which you are still liable.

What happens to the balance on your VAT current account?

If you still have a credit balance on your VAT current account on 30 April 2026, it will be automatically transferred to your new advance account.

However, if at that time at least one periodic VAT return has not yet been submitted, you will be given a few additional weeks to regularise the situation. After that, the VAT authorities will decide whether the balance:

• will be refunded, or
• will be used to settle outstanding debts.

What else changes as of 1 May 2026?

In addition to the introduction of the advance account, several other important changes will apply:

·       All VAT credits and payments will henceforth be managed centrally via MyMinfin.

·       The existing holiday arrangement will be abolished. The VAT authorities have indicated, however, that they will take a flexible approach to potential penalties if returns are still filed this year within the former holiday scheme.

·       New bank account number for VAT payments

·       New rules for VAT refunds
A refund via the periodic VAT return can only be obtained if the refundable amount is included in box 72 of the VAT return. Taxpayers may always request a refund of the available balance via MyMinfin.