??BE VAT update: New electronic VAT refund procedure for non-EU businesses

Background

VAT is not meant to be a cost for companies. And that goes for non-EU companies as well.

Companies that do not have a VAT number in an EU Member State can often reclaim VAT through a specific refund claim, the so-called 13th Directive VAT refund claims.

Important to note is that not all EU countries allow non-EU businesses to launch 13th Directive refund claims. Some jurisdictions (for example: Italy) only grant VAT refunds in cases where reciprocity exists. Belgium, however, does not exclude any non-EU country from the refund scheme.

A VAT refund request must cover a period of at least three months in the same calendar year and no more than one calendar year.?VAT refund claim under the EU 13th Directive must be submitted at the latest by 30 September of the year following the period relating to the refund application.

What’s new?

Earlier this week, Belgium published a new Royal Decree introducing a new electronic application procedure for 13th Directive refund claims as from 1 July 2022. This is to align the process with the refund procedure in place for EU businesses (Directive 2008/9/EC).

https://www.ejustice.just.fgov.be/cgi/article_body.pl?language=fr&caller=summary&pub_date=2022-04-19&numac=2022031695%0D%0A#end

How can we help?

We help foreign companies in applying for VAT refunds. Which VAT can be reclaimed and which not? Furthermore, the VAT refund procedure under the EU 13th Directive may be used only if the business did not perform any taxable supplies in Belgium during the refund period (excluding a.o. certain supplies covered by the reverse charge). A refund claim often reveals other VAT obligations. That is why it is important to check your business flows in each EU country where you incur input VAT.

VAT Consult is happy to assist you in checking whether all conditions and formalities are fulfilled in any EU Member State. Contact us at [email protected].