It’s the start of a new month, and there’s always something new in the tax and compliance sectors. So, what’s changed recently?  

Belgium’s quarterly VAT return deadline extended, and new assessment system implemented

Businesses who have registered for VAT in Belgium and are eligible to submit VAT returns on a quarterly basis will have their filing deadlines extended, starting from 2025.  This means that the quarterly return for Q4 2024 will be eligible for the new filing deadline. 

Previously, the standard deadline was the 20^th of the month following the return period.  After the extension is implemented, the deadline for filing submitting quarterly returns will be on the 25^th instead, giving businesses five additional days to prepare their submission. 

The updated deadline schedule can be found on the official calendar provided by the Belgian Tax Authority. 

It is important to note that this deadline extension does not affect businesses submitting monthly VAT returns – the deadline of the 20^th will remain unchanged for the foreseeable future.

Additionally, for missed returns, the Belgian Tax Authority will also begin issuing assessment notices (also known as ‘substitute’ VAT returns).  These serve as estimates of the VAT liability due, a system which has already been implemented in many other European Union tax jurisdictions, as well as the United Kingdom.  

A substitute VAT return will be issued three months after a VAT return has not been filed for any given period. 

However, one key difference to other jurisdictions is that registered businesses must submit their actual VAT return within one month of receiving the substitute, otherwise the substitute will be considered final and can only be overturned via an official appeal.  In many other jurisdictions, the assessment will be automatically overwritten once a VAT return is submitted.  Under the new changes, this will not be the case in Belgium.

Estonia makes VAT changes – rate increases scheduled for 2025

Estonia has made several changes to local VAT regulations. 

The headline change is that the standard rate of VAT will be increased by another 2%, from 22% to 24%, effective from the 1^st July 2025.  This follows a previously approved increase from 20% to 22% (2%), which was officially implemented earlier this year in January 2024. 

The Estonian government’s rationale for the continued increase in the standard rate of VAT is the need to obtain additional funding in response to the Russian invasion of Ukraine.  VAT remains a key way for national governments to obtain revenue.    

The change to the headline rate of VAT follows further confirmed changes to some reduced rates, which are scheduled to go into effect starting from the 1^st January 2025: 

• Accommodation services: increased to 13% (from 9%)
• Press publications: increased to 9% (from 5%)

As part of the transition period, invoices issued before 2025 will still be eligible for the previous rate, even if the goods and/or services are only delivered after this date.  This extension will provide for goods/services delivered up to the 31^st December 2026, after which the new VAT rates will be permanent.

In addition to these changes, further tax increases of 2% are expected to be introduced in 2026 – the increases are expected to be applied to both personal income (i.e. income tax) and company profits (i.e. corporation tax). 

More information will be made available when proposals are officially announced by the Estonian government.   

Regulations on Single-Use Plastics to be introduced in Germany

Starting from the 1^st January 2025, Single-Use Plastics (SUPs) will be regulated under the Single-Use Plastics Fund Act (EWKFondsG).  This means that sellers will need to register with the German Environment Agency (DIVID) before they are permitted to sell SUPs in Germany.   The regulations cover both domestic (i.e. those based in Germany) and overseas sellers. 

Registration for overseas (non-German) businesses opened in August 2024.  Seller should aim to register before the end of the year in order to ensure compliance before the enforcement date.

This regulation is in addition to the existing Extended Producer Responsibility (EPR) categories covering the sale of Packaging, Batteries and WEEE, and marks another expansion of environmental regulations in Germany. 

Under the new regulations, products will be considered as SUPs if:

• They are made entirely/partly out of plastic, AND
• They are not designed to be used multiple times (e.g. not being designed for re-use by the consumer, or to be returned to the manufacturer for refilling)

Some of the common categories covered by EWKFondsG include:

• Food containers
• Beverage/drinks cups
• Wet wipes containing plastics

More information is available from DIVID.  If you are not sure whether your product is categorised as an SUP, you can find out more here.   

Online marketplaces will be obligated to check your registration status.  Once you have successfully registered, you will need to report your sales and pay a proportional contribution fee.  This is in line with the three other EPR categories currently enforced in Germany.