VAT

Navigating VAT in the financial sector requires careful analysis, as these activities are mainly exempt while input VAT recovery remains limited. PwC Belgium assists its clients by evaluating transaction flows, assessing correct application of VAT exemptions, and optimising VAT deduction methodologies, including pro-rata calculations. PwC can also explore ways to reduce the impact of non-deductible VAT (via VAT group or application of specific VAT exemptions on incoming transactions). By combining technical expertise with a tailored approach, we enable clients to limit VAT costs, reduce VAT leakage, and operate with greater certainty in a complex regulatory environment.

We help clients manage the VAT implications of their supply chain across both domestic and international operations. We advise on the VAT treatment of goods movements, cross-border transactions, warehousing models, and distribution structures. We also support clients in assessing invoicing flows, import and export requirements, and the impact of supply chain set-ups on VAT reporting and compliance obligations. By combining technical VAT knowledge with a practical understanding of business operations, we help businesses build efficient supply chains, reduce risk, and avoid unnecessary VAT costs.

We support clients throughout the full deal cycle, from structuring and due diligence to execution and post-deal integration. We help identify VAT risks and opportunities at an early stage, ensuring these are properly identified. We usually review the VAT position of entities and assess exposures. We also advise on VAT deduction of transaction costs as well as the optimal VAT structuring of acquisitions, mergers, carve-outs, and reorganisations. After closing, we support clients with the practical implementation of the agreed structure and with aligning VAT processes in the new business set-up. Our objective is to help clients complete transactions efficiently while reducing VAT leakage and avoiding unexpected liabilities.

We support clients with their VAT compliance obligations, helping them meet filing requirements accurately and on time. We assist with the preparation and review of VAT returns as well as other VAT related listings/obligations, both domestically and across multiple jurisdictions. To do so efficiently and consistently, we leverage on technology that help streamline data collection, improve reporting processes, and enhance the accuracy of compliance workflows. We also help clients strengthen their compliance processes, identify risks, and address technical issues. Our aim is to provide reliable, practical support that reduces compliance burdens and helps our clients remain confident in their VAT reporting.

These recent years, there is a steady increase in audits launched by the VAT authorities. To make sure companies are ready, we assist them by performing audit readiness assessment (ie. to prepare them for potential audit in the future). Once this is no longer possible, we also assist our client throughout VAT audits and disputes, helping them manage risk and respond effectively to tax authority enquiries. We provide full support including audit preparation, the review of documentation and guidance when interacting with the VAT authorities. Where disagreements arise, we advise on litigation strategy and represent clients during administrative procedures with the purpose of reducing potential exposure and resolving disputes.