Foreign VAT taxable persons without a Belgian VAT registration number, can apply for a refund of Belgian VAT incurred in the framework of their economic activity. This VAT refund procedure exists for EU-established as well as non-EU established businesses.
Whereas EU-established businesses could submit their EU VAT refund claim electronically in the Member State where they are established, non-EU established businesses were obliged to file their refund claim for Belgian VAT on paper in Belgium. Needless to say that this paper based procedure was inefficient. This will change. From 1 July 2022 the application for the refund of Belgian VAT by non-EU established businesses can also be filed electronically, making it easier for non-EU established VAT taxable persons to claim back Belgian VAT incurred.
As a reminder, we reiterate a number of basic conditions for the VAT refund claim. Non-EU established businesses are entitled to recover Belgian VAT if:
Furthermore, input VAT refund limitations can apply depending on the nature of the cost. No VAT refund is allowed for VAT on:
A partial VAT refund will be allowed for car costs as the VAT refund for these costs is limited to maximum 50% of Belgian VAT incurred. This also applies to maintenance, repair and fuel costs in Belgium.
The deadlines for submitting and processing the electronic refund application remain unchanged. The request (with all required data) must be submitted by 30 September of the calendar year following the year in which the VAT became chargeable.