As mentioned in our newsletter of September 2019, in its Summer Agreement of July 26, 2017, the federal government introduced the optional VAT levy on the rental of (professional) new real estate. This entered into force as of January 1, 2019.
One of the consequences of the new regime is that the landlord can deduct the incoming VAT paid on the building costs. On the other hand, also the historical VAT can be revised. This is the VAT that became claimable before January 1, 2019 but that could not be deducted before. More specifically, it concerns VAT on:
This historical VAT can be deducted in the first VAT return of 2019 but only to the extent that there is an amount of VAT due. A possible balance must be transferred to the following VAT returns until the last VAT return of 2019. It is only then that a balance can be actually reclaimed. It is therefore waiting until the beginning of next year to recover the historical VAT.
Historical VAT: EUR 50.000
VAT due following the first VAT return of 2019: EUR 20.000
Only EUR 20.000 can be deducted. EUR 30.000 must be transferred to the next quarters.
In case there further is no amount of VAT due in quarter 2 and 3, the amount can only be reclaimed in the last VAT return of 2019.
This means a prefinancing of (part of) the historical VAT until the beginning of 2020!