The Mobility Budget, a second alternative to the company car

The Federal Government set itself a very ambitious goal to create a shift in mobility behaviour by providing an alternative to the current company car schemes, with the aim for such alternative to be cost neutral for all parties involved.

On 7 February 2023, the draft bill aimed at modernising the Belgian VAT chain was introduced in the Chamber of Representatives. In addition to some fundamental changes on VAT compliance and the VAT refund process, the new bill also contains an important proposal to change the VAT procedural rules.

In this overview, we will focus on the most relevant tax ambitions andobjectives in the Policy Note for tax practitioners dealing with corporate tax, individual tax, VAT, international tax or private wealth. 

The Belgian government has decided to introduce the option to subject immovable rent to VAT for projects as of 1 October 2018, adding a valuable alternative to exploit real estate in Belgium. The objective of the new regime is to provide companies flexibility in how they exploit their real estate, allowing landlords to deduct VAT on their investments.