Revision period for valuable services

Revision period for valuable services

As early as 2005 a parliamentary bill has been submitted regarding the implementation of a revision period towards valuable services. This regulation should be an extension to the former and current applicable revision period on investment goods. The State Secretary of Finance announced last week that he intends to implement such a revision period towards valuable services in order to secure an equal treatment between valuable services and investment goods.

It concerns services purchased to be used for a longer time in the company, which are or could be amortized for (Corporate) Income Tax. Currently the deduction of VAT on valuable services is final after the end of the relevant financial year. By extending the revision period to valuable services a correction applies to the initially recovered VAT during a revision period of approximately 5 or 10 years. This amendment affects primarily taxpayers not having a full right to deduct input VAT and taxpayers operating within the real estate sector.

The Ministry of Finance has opened an internet consultation for the period of 18 May 2017 up to and including 15 June 2017 regarding the text proposal for this extension.