Belgium: VAT on Letting of Property

In its most recent framework for a budget agreement, the Belgian government has proposed giving taxpayers the option to collect VAT on the letting of immovable property, beginning January 1, 2018. This would allow taxpayers to deduct any input VAT incurred on operations such as construction that are directly related to the letting of the property. Member States are authorized to grant the right of option for taxation of the leasing or letting of immovable property under Article 137 of Council Directive 2006/112/EC (the EU VAT Directive).