VAT refunds

VAT incurred in Belgium

In general, VAT is wholly deductible, although various exceptions do exist.

If the balance of a VAT return results in an amount in favour of the taxable person, the VAT credit will be automatically carried forward to the next period covered by a VAT return.

The VAT credit can also be refunded on a quarterly basis and, under certain conditions, a taxable person can even obtain authorisation for a monthly refund of VAT credits.

VAT incurred in foreign countries

Trading with businesses or buying goods and services in other countries can result in foreign VAT being charged to your business. The EU regulations provide for a refund procedure so that VAT incurred can be recovered from the relevant tax authority.

However, not all countries refund VAT charged in respect of the same items.

VAT incurred in foreign countries:

• hotel costs
• meals
• car rentals
• exhibition costs
• vehicle fuel

• Is there a duty to register for VAT purposes in Belgium?
• Can the VAT be recovered? (Non-EU and even some EU countries have their own rules on what input VAT is refundable)
• Do the invoices meet the formal invoice requirements?
• And, finally, the refund procedure formalities need to be met (application form, original purchase invoices and timing)