Belgium's Federal Public Service (SPF) Finance has issued a release on new procedures for the allocation of input VAT for taxable persons making mixed supplies (i.e., engaged in taxable and exempt activities). This includes that with effect from 1 January 2023, taxable persons making mixed supplies (mixed taxable persons) are required to submit a prior notification if opting for the deduction of input VAT according to the actual allocation (use). For taxable persons not yet applying the scheme for the deduction of input VAT according to actual allocation, the notification must be submitted:

• Before the end of the first reporting period of the current calendar year, if already a mixed taxable person; and
• Before the end of the first reporting period following the start or change of activity, if becoming a mixed taxable person by starting or changing activity.

The notification is valid for an indefinite period and only needs to be submitted once.

For taxable persons already applying the scheme for the deduction of input VAT according to the actual allocation as on 31 December 2022, the notification must be submitted by 30 June 2023 to confirm the continued application of the scheme.