New VAT rules from 2025: what will change?
New VAT rules from 2025: what will change?
January 2025 - The year 2025 will bring a series of changes on the VAT front. Deadlines, procedures and practicalities will all be updated.
Wider deadline for quarterly returns
For businesses filing VAT returns quarterly, the deadline will be extended. From 2025, you will get until the 25th day of the month following the quarter to file and pay your return. Thus, the first-quarter VAT return must be in by 25 April instead of 20 April. The new rule will take effect from January 2025, so it already applies to the fourth-quarter 2024 return as well.
Do you file a monthly return? Then the deadlines will remain unchanged. Moreover, the payment deadline for all returns will remain the 20th of the month. Submission of intra-community returns will also follow the same new deadlines as quarterly returns from now on.
Stricter approach for late or missing returns
The penalties for late or missing VAT returns will become stricter. In addition to a fine, the tax administration can impose a replacement return. This is calculated on the basis of the highest VAT amount due over the past 12 months, with a minimum of 2,100 euros.
This procedure starts three months after the filing deadline expires. You then have one more month to still submit a correct return. If you fail to do so, the imposed assessment becomes final. Objections can then only be filed through an administrative appeal or legal proceedings.
New rules for VAT refunds
From 2025, the procedure for reclaiming VAT credits will change. Businesses will only be able to reclaim the credit from that return itself via the periodic return. This credit must be at least EUR 50, and all VAT returns for the previous six months must have been submitted on time.
Monthly declarants retain the right to submit monthly refund requests. A separate procedure will be introduced for the current account balance, separate from the regular return.
Tighter deadlines for VAT enquiries
Until now, there was no strict deadline for taxpayers to answer VAT enquiries. From 2025, you will be given a fixed deadline of one month for this, counting from the third working day after the request for information is sent. This change brings the rules in line with those for direct taxes.
Practical changes
The current current account will be replaced by a ‘commission account VAT’. In addition, from 2025 it will be possible to arrange VAT payments by direct debit, which could significantly reduce the administrative burden on businesses.