{"id":26396,"date":"2025-12-08T13:10:58","date_gmt":"2025-12-08T12:10:58","guid":{"rendered":"https:\/\/bakertilly.be\/?p=26396"},"modified":"2025-12-16T09:00:23","modified_gmt":"2025-12-16T08:00:23","slug":"end-of-year-tips-2025-vat","status":"publish","type":"post","link":"https:\/\/bakertilly.be\/en\/news\/end-of-year-tips-2025-vat\/","title":{"rendered":"End-of-year tips 2025: VAT"},"content":{"rendered":"

In this article<\/h3><\/div>

Key focus areas for 2025:<\/h3><\/div>1. VAT deductibility of business gifts and staff parties<\/a>2. VAT recovery on unpaid invoices<\/a>3. Transfer Pricing year-end corrections and VAT<\/a>4. Demolition and reconstruction: form 111 available<\/a>

Looking ahead to 2026:<\/h3><\/div>1. The digital era for B2B invoicing<\/a>2. Annual review of right to mixed\/partial VAT deduction<\/a>3. VAT rates 2026<\/a>4. VAT calendar 2026<\/a><\/div><\/div><\/div><\/div>

Key concerns for 2025<\/h2><\/div>

1. VAT deductibility of business gifts and staff parties<\/h3><\/div>

Do you want to give your staff or business relations a small token of appreciation as the year ends? You must also take specific VAT rules into account regarding the VAT deduction for gifts and staff parties.<\/p>\n

For business gifts<\/strong>, only one gift per calendar year per employee\/customer with an amount lower than 50 euros (excluding VAT) is eligible for VAT deduction. For a gift of 50 euros or more, no VAT deduction is possible. There is no deduction whatsoever for tobacco products and spirits. Be careful with a gift consisting of multiple components, such as a bottle in a nice wooden box.<\/p>\n

VAT on the costs of food and drinks during a staff party<\/strong> is, in principle, never deductible. However, if the company provides meals itself and the employees serve themselves, the tax authorities can reclaim the VAT on these meals. In that case, it is not considered a restaurant or catering service. Other costs related to a staff party are deductible under certain conditions according to the normal VAT rules.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div>

2. VAT recovery from unpaid invoices<\/h3><\/div>

As soon as the VAT becomes due as a result of a supply of goods or the performance of a service, the supplier\/service provider is obliged to remit the due VAT amount to the Treasury via the periodic VAT return. However, at the end of the year, it may be noted that there are outstanding customer claims for which the due VAT has already been paid.<\/p>\n

The VAT can be recovered as soon as it is definitively established that the claim is wholly or partially lost. The exact time at which a claim may be considered definitively lost is not specified by law. The burden of proof lies with the supplier\/service provider: they must be able to demonstrate that they have exhausted all possible means of recourse to collect the claim before recovering the VAT.<\/p>\n

A three-year limitation period applies to the refund of VAT on bad debts. Invoices issued in the 2022 calendar year that are considered definitively lost are still eligible for VAT recovery no later than 2025.<\/p>\n

Note:<\/strong> In the event of an assignment of a claim, you must take various formalities into account. Specific VAT rules apply to which we can advise you further.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div>

3. Transfer Pricing year-end corrections and VAT<\/h3><\/div>

Year-end settlement between affiliated companies: is this the result of a performance and therefore subject to VAT, or is it a profit distribution or correction that falls outside the scope of VAT?<\/p>\n

Following a recent judgment, the Court of Justice confirmed that Transfer Pricing corrections between affiliated companies can, under certain conditions, be considered remuneration for a service performed for consideration. If there is a direct link between the service provided and the consideration, contractually agreed profit margin adjustments can be considered remuneration for a service, and are therefore subject to VAT (Arcomet, C-726\/23, point 49).<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div>

4. Demolition and reconstruction: form 111 available<\/h3><\/div>

In 2025, the ‘6% for demolition and reconstruction’ scheme was adjusted again. Thanks to this change, the supply of a dwelling after demolition and reconstruction can again take place at the reduced VAT rate of 6%. In accordance with the other schemes, a correct declaration must be submitted in time for this.<\/p>\n

When the new scheme came into effect, Form 111 was not available, and it was necessary to work with an invoice declaration provided by the administration. Form 111, which serves as the official declaration, is now available via MyMinfin, under the ‘my interactions’ tab.<\/p>\n

The building owner\/seller must submit the declaration, depending on the destination of the reconstructed dwelling:<\/p>\n