Change a Company's VAT Regime

Evolving your VAT regime in full compliance

Change a Company's VAT Regime

We are J. Jordens, and while the initial activation of your VAT number is a well-known step, changing your VAT regime during the life of your company is much less so. Yet this process concerns a large number of growing companies or those changing activity.

Situations that require a change

• Exceeding the exemption threshold: your turnover now exceeds the legal ceiling, you must switch to the normal VAT regime.
• Change of periodicity: moving from a quarterly to a monthly return, or vice versa, depending on your turnover.
• International expansion: adding intra-community or import-export operations requiring more comprehensive VAT management.
• Change of activity: a new activity may fall under a partial or total exemption regime different from the initial one.

Leaving the tax exemption scheme

When a small business exceeds the turnover threshold allowing it to benefit from the exemption scheme, it must imperatively switch to the normal regime. This change is not automatic: it must be reported to the tax administration, generally via your business counter, and thereafter involves the obligation to invoice VAT to your clients and to be able to deduct VAT paid on your business purchases.

VAT number deregistration

Conversely, a company that stops a VAT-subject activity, without dissolving the company itself, must proceed with the deregistration of its VAT number. This step avoids having to continue filing periodic returns for an activity that no longer exists, which could lead to unwarranted reminders or administrative fines.

Changing the periodicity of returns

Depending on your annual turnover, you may be required to declare your VAT monthly rather than quarterly, or conversely request to benefit from quarterly periodicity if your activity drops below certain thresholds. This change must be filed within the legal deadlines to be applicable to the following period, otherwise you remain subject to the old periodicity for several additional months.

Anticipating the impact on your accounting

Any change of VAT regime has direct repercussions on your invoicing and on your accountant's work. We systematically recommend coordinating this process with your accountant, so the transition happens without interruption in the follow-up of your tax obligations, particularly when leaving the exemption scheme for the normal regime.

Our support for these changes

Since 1948, our firm has supported Belgian companies in all their procedures with the tax administration and official registries, including VAT regime changes during the life of the company. We make sure every change is filed within the legal deadlines, to avoid any avoidable reminder or penalty.

Support that goes beyond a simple formality

Changing a VAT regime is not just an administrative box to tick: it is a change that concretely affects your daily invoicing and how your clients perceive your prices, particularly when leaving the exemption scheme. We take the time to explain these practical consequences before even starting the process, so you can adapt your commercial communication with peace of mind.

The case of seasonal or irregular activities

Some companies with a strongly seasonal activity may benefit from requesting a declaration regime suited to these variations, rather than being subject to a standard periodicity poorly matched to their actual invoicing flows. We assess with you whether such an adjustment is relevant to your situation.

A VAT regime well suited to the reality of your activity limits year-end regularizations and greatly facilitates reading your cash flow throughout the year, an advantage often underestimated by young companies.

Do you need to change your company's VAT regime in Brussels? Contact us for fast handling compliant with current regulations.