Mixed taxpayers (companies that carry out both activities where VAT is due and activities where it is not) are set to face simpler rules in the future. According to Finance Minister Jan Jambon (N-VA), the current regulations cause legal uncertainty and administrative burdens, prompting the launch of a clearer and simpler framework to be put in place.
"Entrepreneurs should be able to concentrate on their work, not on endless paperwork," Jambon said. He is referring to the additional reporting obligations applicable since 2024 for mixed VAT taxpayers who opt for the actual use system. Those rules were introduced to combat tax fraud but, according to Jambon, lead to complex and cumbersome administration, often accompanied by ambiguity.
His reform will remove the obligation for small businesses to report on this to the tax authorities from 1 January 2026. However, they must still be able to present the necessary justification when audited. For larger organisations, there will be more clarity from the same year. They will immediately be able to meet their VAT obligations in an unambiguous manner.
