The optional VAT regime on the lease of real estate, announced in an earlier article on our website, will not be introduced after all because of the excessive impact on our country's budget.

On 23 August 2017, we announced that our government had decided in its summer agreement of 26 July 2017 to introduce an optional VAT regime for the lease of real estate to professionals.

We now found out through the press that this measure will not be introduced after all because of its excessive impact on Belgium's budget. Instead of this measure, the VAT regime for warehouses will be rendered more flexible. An exception regime existed already for warehouses, allowing, under certain conditions as described in a circular letter, to apply VAT on rent. These conditions will be more flexible so that it will be possible to rent more warehouses under the VAT-regime.