A draft bill amending the Belgian VAT Code introduces important changes for real estate operators, in particular with respect to the VAT revision period applicable to renovation and transformation works.
Going forward, a 15-year VAT revision period will apply not only to the construction and acquisition of new buildings, but also to renovation or transformation works that, by their nature and economic lifespan, are comparable to immovable investment property. The traditional distinction between renovation and new construction is no longer decisive. Minor transformation works remain subject to the standard five-year period, while repairs and maintenance fall outside the revision mechanism.
This reform is a direct response to recent case law of the Court of Justice of the European Union and is intended to align Belgian VAT rules with the principle of fiscal neutrality. The new regime will apply as from 1 January 2026 to changes in use occurring from that date, insofar as the VAT has not yet become definitive under the current rules. Expired revision periods will not be reopened, but remaining years may revive where this is favourable to the taxable person.
The same approach is extended to buildings let with VAT under the optional VAT regime, for which the 25-year revision period may also apply to qualifying renovation works. Further administrative guidance is expected to clarify the scope of the new rules.
If you have any questions, feel free to reach out to the authors of this article, Manuela von Kuegelgen or Rik Strauven.
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This newsletter does not constitute legal advice or a legal opinion. Please consult with a legal counsel of your choice before taking any action based on the information provided.