Filing of Annual Financial Statements: Take Action Before August 1, 2026!

If your company is a BV or an NV, you are required to file annual financial statements with the National Bank of Belgium. For a VOF or CommV, this is only required in exceptional cases.

Every company must file its financial statements within thirty days after they have been approved, and no later than seven months after the end of the fiscal year. For a fiscal year that coincides with the calendar year, your 2025 financial statements must therefore be filed no later than July 31, 2026. However, if these financial statements were approved, for example, on May 15, 2026, they must be filed by June 14, 2026.

Effective May 1, 2026, the VAT current account will be phased out and replaced by the VAT provisional account. For businesses that file their VAT returns and make payments on time, the basic process will not change significantly.

The practical impact is mainly felt in financial management: payments, credits, offsets, and refunds are organized differently.

The VAT provision account will become the central tool

The amounts available in that commission account are automatically used to pay VAT due from periodic VAT returns. The commission account can be funded in two ways. A business can deposit funds itself or have VAT credits credited to the reserve account by not requesting a refund via the periodic VAT return.

Payment: Which account number do you use?

To fund the VAT reserve account and to pay periodic or replacement VAT returns, use BE41 6792 0036 4210 (VAT). This account number applies both to crediting the provisional account and to the payment of periodic and replacement returns, as long as the debt has not yet been included in an enforceable title.

The existing structured notification, based on the business identification number, remains important.

Through December 31, 2026, payments made to the old account will still be automatically forwarded to the new account. They will not be automatically refunded.

When do VAT credits become available?

For monthly filers, a credit becomes available in the month following the filing period. A business that files its June VAT return on time—by July 20—will see the VAT credit appear in its commission account by August 20 at the latest. That credit can then be used to pay the July VAT return.

For those who file quarterly, this takes longer. A credit from the second-quarter return, filed on time by July 25, will be credited to the commission account no later than October 25. That credit can then be used for the third-quarter return.

The message is clear: VAT credits are not necessarily immediately visible and require some follow-up.

Please note: If you file your tax return late, you will not be able to use any tax credit!

Late filing not only carries the risk of fines, but also has a significant impact on cash flow.

If a monthly return is filed late, any VAT credit will not be credited to the commission account until two months after the return is actually filed.

If a quarterly return is filed late, this does not occur until three months after the actual filing date.

Important: In the event of late filing, a VAT credit will automatically be posted to the commission account, even if a refund was requested in the return. In addition, a penalty of 100 euros per month of delay will be imposed, up to a maximum of 500 euros. In the event of failure to file, fines can range from 500 euros for a first offense to 5,000 euros starting with the fourth offense.

In addition, the tax authorities may prepare a proposed substitute return with a minimum VAT amount due of 2,100 euros. The taxpayer then has one month to file a periodic return.

What happens if payment is late?

If the VAT due is not paid on time, late-payment interest is due. If payment is not made by the tenth day of the month following the due date, a penalty may also be imposed in the amount of:

• 5% if the return was filed on time but payment is late;
• 10% if both the return and the payment are late;
• 15% for a final amended return.

Refund: via tax return or commission statement?

Effective May 1, 2026, a clear distinction must be made between two reimbursement procedures.

A refund via the periodic VAT return applies only to the credit balance resulting from that specific return. Prior to May 1, 2026, a request submitted via the return could also result in the refund of the entire available balance in the current account. That will no longer be the case.

To request a refund through your tax return, check the “Request for Refund” box. The timeline is as follows:

• Monthly taxpayers generally receive their refund at the end of the second month following the filing period;
• Quarterly filers generally receive their refund at the end of the third month following the filing period.

Anyone who wishes to request a refund of amounts already credited to their VAT commission account must submit a separate request via MyMinfin (My Payments\Manage My Commissions\Request a Refund of My Commissions). This request may cover the entire available balance or just a portion of it.

If there are any outstanding debts, the amount requested for a refund will first be used to settle those debts. Only any remaining balance will actually be refunded. The Administration must have a valid bank account on file. You can update that bank account number via MyMinfin.

Transition from the checking account

The manual also explains what happens to existing balances in the checking account.

If no refund was requested in the March 2026 return or in the first-quarter 2026 return, the available amounts in the current account will be automatically transferred to the VAT reserve account.

This transfer will take place before May 20, 2026. For businesses with a significant balance in their checking account, this is a key decision point. They must determine whether they still want to claim the credit through their tax return or have it transferred to their commission account and claim it later via MyMinfin.

Where do you keep track of everything?

In practice, MyMinfin will serve as the central point of contact.

You can view outstanding debts and refunds under “My Payments.” You can track your commission account and request a refund under “Manage My Commissions.”

That distinction is important.

Cessation of Operations

The manual also covers how to discontinue an activity.

If the account is closed after May 1, 2026, any positive balance in the VAT commission account will be refunded after any outstanding debts have been settled. If the company itself requests the refund through the commission account, that refund will be processed within one month. Without a request, the refund will be processed automatically within six months of notification of the termination.

Conclusion

The introduction of the VAT commission account is more than just a change in account number. Above all, it changes the practical tracking of VAT credits, payments, offsets, and refunds.

Companies would be wise to review their payment processes before May 1, 2026. Bank details, payment templates, standing orders, etc., must be updated.

For businesses with regular VAT credits, timing becomes particularly important.

A late filing not only results in fines, but can also mean that VAT credits won’t be available until months later.

Should you buy a plug-in hybrid or electric passenger car to use for business purposes through your company or as a self-employed person in Belgium?

1. Deductibility of car expenses: depending on the type of car

For hybrid and fossil-fuel passenger cars purchased on or after July 1, 2023, the tax deduction will be phased out.

The deduction percentage based on the gram formula is capped at:

• Maximum 75% in 2025
• Maximum 50% in 2026
• Maximum 25% in 2027
• 0% effective January 1, 2028

An electric car is not included in this category.

2. Plug-in Hybrids and Personal Income Tax

For self-employed individuals operating as sole proprietors, there is a specific, more recent regulation for plug-in hybrids purchased on or after 2026.

These vehicles remain deductible for personal income tax purposes according to the gram formula. The deductibility is as follows:

Important exception: if CO₂ emissions < 50 g/km, then the 75% cap does not apply to purchases made in 2026–2027, and the deduction can be as high as 100%. The deduction can never exceed that of an electric car. For plug-in hybrids purchased after 2025, fossil fuel costs (gasoline/diesel) are no longer deductible for personal income tax purposes.

3. Electric cars

For both corporations and self-employed individuals, a 100% electric vehicle purchased in 2026 is 100% tax-deductible for the entire useful life of the vehicle. Subsequently, a degressive system will be introduced for vehicles purchased on or after 2027, with a gradual reduction in the deduction.

4. Deductibility of Energy and Fuel Costs
   • Plug-in hybrid: fuel versus electricity
     • Plug-in hybrid purchased between January 1, 2023, and June 30, 2023 (corporations)
   • Fossil fuels are tax-deductible up to 50%
   • Other car expenses (leasing, maintenance, insurance, electric charging, etc.) are calculated using the gram formula.
     • Plug-in hybrid vehicles purchased on or after 2026 by self-employed individuals subject to personal income tax
   • Fossil fuels are no longer tax-deductible
   • Car expenses are deductible under the new gram formula (up to 75% in 2026–2027, or up to 10% if CO₂ emissions < are 50 g/km)
   • Electricity costs for charging are included in general car expenses and are deductible according to the gram formula.

• Electric cars: electricity costs
• These expenses are treated the same as car expenses and are subject to the same deduction rate as the car
• For an electric car purchased in 2026, charging costs are 100% tax-deductible, provided they are for business purposes.
• CO² Solidarity Contribution

The solidarity contribution (CO² tax) is a social security contribution that is due when a company car is made available for personal use. It is based on the car’s CO₂ emissions. It is fully deductible by the company as a social security contribution and is not subject to the deduction rule for vehicle expenses.

5. Benefit in Kind

The benefit in kind is calculated on a flat-rate basis based on the catalog value, CO₂ emissions, and the vehicle’s age coefficient. The benefit is higher for fossil-fuel-powered cars and lower for plug-in hybrid and electric cars. The least efficient plug-in hybrids are penalized in this calculation.

6. Decision

For companies, a fully electric car will clearly be more tax-efficient by 2026. Vehicle expenses and energy costs remain 100% tax-deductible, and the CO₂ solidarity contribution is minimal. The benefit-in-kind is just as favorable as that of a true plug-in hybrid. For self-employed individuals operating under their own name (sole proprietorships), a fully electric car is also 100% tax-deductible. A plug-in hybrid may still offer a reasonably favorable deduction (up to 75% or even 100% for very low CO₂ emissions), but the cost of fossil fuel is no longer deductible. Furthermore, there will be no deduction starting in 2030. The tax rules were clarified in 2026 to structurally favor fully electric vehicles, both for corporate and personal income tax purposes.

As of March 2025, every business location listed in the Cross-Reference Database of Enterprises (KBO) must have at least 1 and no more than 5 primary activities.

Under Belgian law, maintaining accurate and up-to-date information in the KBO is a core obligation for companies and other entities required to register. The KBO is an official identification registry and a pillar of legal certainty in economic transactions. Failure to comply may result in the refusal of a registration or amendment, an ex officio cancellation, and administrative sanctions against companies.

Since March 2025, there has been a registration requirement for registered entities. This group is broader than before: individual entrepreneurs, all legal entities, certain organizations without legal personality, etc.

Any change to the basic identification data must always be recorded in the KBO, along with the effective date.

There is also a link to the UBO registry. Since December 21, 2023, companies may be automatically removed from the KBO if they persistently fail to comply with their UBO obligations (including failure to respond within 60 days of receiving a fine, failure to provide annual confirmation, or no publications in the Belgian Official Gazette for seven years).

Be sure to check your information in the KBO and consult your accountant if there are any changes.

Currently, if you perform services of a cultural, artistic, sporting, scientific or entertainment nature, they are deemed to take place where those services are materially performed. The consequence? Sales tax applies from the country where the events or activities actually take place. Here it does not matter whether your customer is an entrepreneur or an individual, and whether that customer attends an event or activity physically or virtually.

VAT rates directive transposed into Belgian law

For virtual cultural services, as of Jan. 1, 2025, the “VAT Rates Directive” will be transposed into Belgian law. As a result, these virtual services will be taxed in the country of residence or establishment of the customer. For physical participation, the rules do not change.

Mere on-demand training (pre-recorded) already qualifies as electronically rendered services and thus is taxable in the country where the customer resides or is established.

B2B context

For virtual events in a B2B context, from Jan. 1, 2025, services will be taxed in the country where the customer is established. Is the customer located in another EU member state than the service provider? Then the VAT will have to be transferred to the customer.

B2C context

VAT number validity in EU member state

Attack secret committee fees?

In De Wever I’s government statement, the tax deduction for hybrid cars would become more interesting again.

How do you lower the tax burden for your sole proprietorship?

Cooperating partner

Do you have a sole proprietorship and are married or legally cohabiting? Then you can pay your partner a salary for the work he or she does in your business. By giving part of your net profit to the collaborating partner, you reduce the tax burden in higher tax brackets. This is because the distributed amount is taken away from the highest tax brackets and taxed again in lower brackets with the collaborating partner. Another plus point: the tax-free allowance is again applied to this distributed amount, providing an additional tax benefit.

Independent helper

This principle also applies to someone who helps you on a self-employed basis – for example, a family member – without being bound by employment contracts. Employing an independent helper combines flexibility of deployment with lower remuneration costs compared to a permanent staff member. After all, you do not pay social security contributions on the salary you give an independent helper. Note: a helper must establish himself as a self-employed person.

Investments

Do you invest in your sole proprietorship, such as in office equipment, machinery or inventory? If so, you should not limit the depreciation of these costs to the number of days you owned the investment. In other words, an investment in December 2024 has the same weight in terms of costs as an investment you already made in January of the same year. This provides interesting opportunities to reduce your year-end profits. Moreover, the depreciation annuity can be doubled even more, since degressive depreciation is also allowed for personal income tax purposes.

Tax credit

If you make the above investments with your own funds, you are eligible for a tax credit. You are entitled to this credit if your own funds in the current year have grown more than the highest growth in the three previous years. In this case, the tax credit amounts to 10% of the difference between the equity in the investment year and the highest amount from any of the three previous years, with a maximum of 3,750 euros. You must eventually repay the tax credit. Are you a beginner self-employed for less than three years? Then the same rule applies, but calculated based on the growth of your equity in the relevant taxable period.

Cessation surcharges

Do you permanently discontinue your sole proprietorship and realize capital gains on (in)tangible fixed assets? Then these can be taxed at 10% in the following cases: when the cessation takes place at the age of 60 or older, in case of death or in case of forced definitive cessation. For discontinuation at any other time, you must take into account a tax rate of 16.5% applied to tangible fixed assets and 33% to intangible fixed assets (provided that the requirements of the “4×4 rule” are met).

For your information, the 4×4 rule means that you are going to compare the cessation capital gain you achieve on such intangible assets with the sum of the net gains you realized in the four years prior to the cessation.

Overpaid in advance in 2024?