9 February 2026
Draft VAT bill proposes extending the VAT adjustment period for certain renovation and conversion works from 5 to 15 years
In Belgium, VAT on investment goods is by default subject to a five-year adjustment period. However, for newly constructed buildings, or for the acquisition of ownership or rights in rem over such buildings, the adjustment period is extended to 15 years (or to 25 years where buildings are leased with VAT under the optional VAT regime).
Administrative guidance has traditionally taken the position that this 15-year adjustment period also applies to renovation and conversion works carried out on a building, provided that those works are so substantial that they result in a new building for VAT purposes. Conversely, works that merely result in a simple conversion or improvement of buildings or parts thereof, without the building being considered as new for VAT purposes following the completion of the works, remains subject to the standard five-year adjustment period.
Recent case law of the CJEU (Case C-243/23 Drebers) stated that the decisive criterion for the adjustment period should instead be the economic lifespan of the renovation and conversion works and whether this is comparable to that of the building into which they are integrated.
The draft VAT bill seeks to align Belgian VAT legislation with this case law by extending the 15-year adjustment period to renovation and conversion works that have an economic lifespan comparable to that of a building. The said economic lifespan will nevertheless have to be assessed on a case-by-case basis. In this context, the tax authorities have announced that further guidance will be provided by way of an administrative circular.
The new rules are currently expected to apply as from the 10th day following publication of the final legislation approved by Parliament.
Key takeaway / recommendation
The new adjustment period also applies to pre-existing situations, but only when that is in the taxpayer's favor. Accordingly, businesses should perform a look-back to identify renovation and conversion works for which they can now (partly) recover historic input VAT.
Given the highly factual nature of the new criterion, taxable persons should also monitor further administrative guidance and seek further advice where the position remains unclear.
