A new Royal Decree of 26 October 2022 has detailed the implementing measures for this new procedure. With these new provisions, the rules become much more formalistic: prior notification, detailed information to be submitted with the VAT return, and introduction of strict deadlines. Retroactive application of the real-use method is only possible if the formalities are fulfilled correctly and on time. Furthermore, the administration can reject or adjust the application of the real-use method retroactively.
As provided for in the law, a notification with detailed information must be submitted in existing cases by 30 June 2023 at the latest. Please meet this deadline to avoid a (temporary) rejection of the application for the real-use method. It is envisaged that the VAT authorities will review the current practice and correct it if necessary. Mixed and partially taxable persons applying the real-use method should thoroughly review their current situation in light of these new obligations.
These new rules will significantly impact all sectors with mixed or partial VAT liability, such as real estate, financial services, public administration, education, medical services, holding companies, etc.