If you have a business and your professional activity is not exempt from VAT (in accordance with Article 44 of the Belgian VAT Code), you will usually be able to deduct the VAT you pay on your own business purchases from the VAT your customers have paid to you. You only pay over the difference and declare this in a periodical return to the tax authorities.

Sometimes your company may have paid more VAT than it received from customers. In that case the tax authorities have to refund the difference to you.

A business that carries out transactions eligible for a deduction of VAT may be able to obtain a VAT refund if it has VAT credit. 

Categories of expenses for which a VAT refund is not possible

For certain categories of expenses there is no right of deduction, which means a VAT refund is also not possible. In Belgium these include:

• supplies and intra-Community acquisition of tobacco products
• supplies and intra-Community acquisition of alcoholic drinks. Drinks intended to be sold or resold or supplied as part of a service are excluded from this.
• costs of accommodation and of meals and drinks for on-site consumption. Costs incurred for staff who have to supply goods or provide a service outside the company are excluded from this, as are costs incurred by taxable persons who in turn provide the same services in return for payment.
• reception costs
• goods and services supplied by other taxable persons to travel agents in respect of all services that form part of or are associated with a trip and directly benefit the travellers (margin scheme for travel agents)
• the purchase and sale of second-hand vehicles and other goods by taxable persons under the margin scheme for second-hand goods

Categories of expenses for which only a partial VAT refund is possible

For a number of categories of expenses there is only a limited right of deduction. This means that you can only obtain a partial VAT refund. Such expenses include:

• Vehicle costs (passenger cars): deduction based on business use, up to a maximum of 50%.
• Equipment that is not used solely for business purposes (telephone, ICT equipment, etc.): deduction based on business use.

You can read more about this in Chapter 11 of the comments on VAT.

The tax administration keeps a VAT current account for every taxpayer that submits periodical returns.

In cases where the taxpayer’s VAT current account shows a surplus in his/her favour (tax credit), upon the expiry of a period to which the regular return relates, this tax credit will generally be carried over to the next return period.

Although this is the general rule, taxpayers can explicitly request a refund of the credit. In order to avoid any potential dispute as regards the period of limitation of the right to reimbursement, such requests must be sent to the accounts department before 31 December of the third year following the date on which the return showing the credit was submitted.

When checking refunds, the auditor is always entitled to request that the original invoices be submitted. In addition, any document applying amendments to the original invoice and making specific and unambiguous reference to that invoice is also considered to be an invoice.

A refund of tax credit can only be made at the explicit request of the taxpayer (by inserting an ‘X’ in the ‘Request a refund’ box in the periodical or special return).

It is possible to correct any errors or omissions by submitting a new return on time with an ‘X’ inserted in the relevant box.

In cases where the error or omission cannot be corrected in time, you should ensure that an ‘X’ has been inserted in the ‘Request a refund’ box in the subsequent return.

General rules

If you submit your VAT returns monthly or quarterly, your VAT refund amount will be refunded to you four times a year, provided that all of the following conditions are met:

• you have explicitly requested a refund of your input VAT by ticking the appropriate box in your VAT return;
• the balance of your input VAT has reached the required minimum threshold;
• you submitted your VAT return on time;
• you have provided FPS Finance with your bank account number.

If these conditions are not met, your VAT refund amount will not be refunded. It is then automatically carried over to the next VAT return period.

The deadline for receiving a VAT refund depends on the accounting period to which your VAT return relates.

Special scheme requiring approval

In some cases, taxpayers who submit their VAT returns monthly will be refunded their VAT refund amount on a monthly basis. They need an authorisation for this scheme.

To be taken into consideration for this authorisation, you need to:

• carry out transactions that are largely exempted when they are outgoing,
• be active in the real estate sector and apply the reduced VAT rate,
• be a person liable to tax, required to fulfil public service obligations,
• be a supplier of electricity, natural gas or heat via heating networks that applies the reduced VAT rate.

And you have to meet the conditions of the Royal Decree No.4, Article 8/1.

You can apply to be approved for this scheme by writing to your management team.

After you have been approved for this scheme, you can recover your VAT refund monthly, provided you have submitted your monthly tax return electronically on time via Intervat.

Accelerated refund for start-ups

Start-ups that opt for monthly returns can receive an accelerated refund of their VAT refund amount.

If you opt for monthly returns when registering your VAT number, you will be automatically enrolled on this scheme. It remains valid for the 24 months following the start of your economic activity.

You can then obtain a monthly refund of your VAT refund amount, provided you have submitted your monthly tax return on time and electronically via Intervat.

Deadlines for VAT refunds

Taxpayers who submit quarterly returns

VAT accounting period	Required minimum threshold for input VAT	VAT refund deadline
First quarter	EUR 400	30 June of the current calendar year
Second quarter	EUR 400	30 September of the current calendar year
Third quarter	EUR 400	31 December of the current calendar year
Fourth quarter	EUR 50	31 March of the following calendar year

Taxpayers who submit monthly returns but who have not been approved for the scheme

VAT accounting period	Required minimum threshold for input VAT	VAT refund deadline
March	EUR 400	30 June of the current calendar year
June	EUR 400	30 September of the current calendar year
September	EUR 400	31 December of the current calendar year
December	EUR 50	31 March of the following calendar year

Taxpayers who submit monthly returns and are approved for the scheme + start-ups with accelerated refund

VAT accounting period	Required minimum threshold for input VAT	VAT refund deadline
January	EUR 50	31 March of the current calendar year
February	EUR 50	30 April of the current calendar year
March	EUR 50	31 May of the current calendar year
April	EUR 50	30 June of the current calendar year
May	EUR 50	31 July of the current calendar year
June	EUR 50	31 August of the current calendar year
July	EUR 50	30 September of the current calendar year
August	EUR 50	31 October of the current calendar year
September	EUR 50	30 November of the current calendar year
October	EUR 50	31 December of the current calendar year
November	EUR 50	31 January of the following calendar year
December	EUR 50	28/29 February of the following calendar year

 

You will receive your VAT refund to the financial account you have provided:

• When you start your activity, you fill in your account number and the other data required on a specific application form for VAT identification for any start of activity (form 604A), to be submitted via the e604 application. You will find access to this application in MyMinfin under the “liens utiles”/useful links tab (VAT: starting, changing or stopping your activity (e604 application).
• If you change your account number or if you did not provide an account number when you started your activity,
  • you fill in your account number via the form for amending the declaration of a VAT identification (form 604B), to be submitted via the e604 application. You will find access to this application in MyMinfin under the “liens utiles”/useful links tab (VAT: starting, changing or stopping your activity (e604 application).
  • you can also inform us thereof at any time by logging in via Myminfin (profile “au nom de l’entreprise”/on behalf of the company under the “mes paiements”/my payments tab, section “modifier mon numéro de compte”/change my account number.

Yes, you can use a third party to claim a VAT refund or make a VAT payment. However, you must have mandated the third party to do so or he must have a power of attorney to act on your behalf.

How to grant a mandate?

Mandates are granted via the ‘Mandates’ application. The application can be used by Belgians with an electronic identity card (e-ID) and by citizens of Member States of the European Union with eIDAS (Electronic Identities and Trust Services).

‘Mandates’ gives you access to the various services of the FPS Finance and those of other Belgian public services.

Once in possession of this mandate, the third party will be able to log in to the Belgian tax application ‘Intervat’. This application enables European companies (identified via a Belgian identification number) to submit their VAT return and other VAT-related documents.

The minimum threshold for VAT refunds differ depending on whether you are in a standard or a special VAT scheme, and on whether you file quarterly or monthly VAT returns.

I file quarterly VAT returns

After filing your VAT return for the first, second or third quarter of a calendar year, you are eligible for a refund if your VAT credit is at least EUR 400. The threshold is different for the fourth quarter of the calendar year: after filing your VAT return, you are eligible for a refund if your VAT credit is at least EUR 50.

I am in a standard scheme and file monthly VAT returns

After filing your VAT return for March, June or September, you are eligible for a refund if your VAT credit is at least EUR 1 485. The threshold is different for returns filed in December: you are eligible for a refund if your VAT credit is at least EUR 50.

I file my VAT return every month under a special scheme

You receive a refund if the VAT credit in your favour reaches a minimum amount of 50 euro, provided the following conditions are met:

• you file monthly returns, and
• you met the conditions in order to benefit from the monthly refund scheme.

Your company can benefit from the monthly refund scheme for your VAT credits if It meets the following conditions:

• It is the holder of a monthly refund authorisation because:
  • it carries out transactions that are largely exempted when they are getting discharged,
  • it is active in the real estate sector and applies the reduced VAT rate,
  • it is a taxable person required to fulfil public service obligations,
  • it is a supplier of electricity, natural gas or heat via heating networks that applies the reduced VAT rate.

• It is a “starter” (taxable person starting its economic activity).

The date of the VAT refund differs depending on whether you are in a standard or a special VAT scheme and on whether you file quarterly or monthly VAT returns.

What is my VAT scheme?

• I file my VAT returns on a quarterly or monthly basis and am in a standard scheme
  SPF Finances must process the refund no later than three months after the period covered by the quarterly return or the return filed for the final month of a quarter.
• I file monthly VAT returns and can benefit from the monthly refund of my tax credits (special authorisation, “starter” status, taxable person required to fulfil public service obligations or supplier of electricity, natural gas or heat via heating networks that applies the reduced VAT rate)
  SPF Finances must process the refund no later than two months after the period covered by the monthly return.

The refund will actually be paid on the last working day of the month, except in December, when payment will be made on the penultimate working day.

How can I check whether I have been refunded?

You can check the current status of your VAT account on the MyMinfin platform at any time. That platform is accessible to all EU nationals. If you are unable to access the platform using your Belgian identity card, you can request an access token. See the procedure for requesting a token.

Is SPF Finances liable to pay late payment interest if it does not repay my VAT within the deadline?

Yes If SPF Finances does not process a VAT refund within the legally prescribed time limits (set out above), interest is payable at a rate of 0.8% per month. For these purposes, a fraction of a month is considered a whole month.

N.B. If you do not meet certain conditions, SPF Finances will not refund your VAT credit. It will be carried over automatically to the next VAT return period and you will not be eligible to receive late payment interest. The conditions are as follows:

• You must explicitly apply for a refund of your credit balance;
• Your credit balance must not be less than the minimum amount required;
• You must file your VAT return by the deadline;
• You must provide SPF Finances with your account number.

Browse the FAQs on the SPF Finances website for more information on VAT refunds.

Depending on your situation, you can either bring an action before the Court of First Instance, or lodge an appeal with the Tax Conciliation Service (Service de conciliation fiscale) in the event of a dispute with SPF Finances.

Bringing an action before the Court of First Instance

When SPF Finances takes a decision, the Judicial Code provides that all European taxable persons are automatically entitled to bring proceedings before the Court of First Instance.

You can bring an action by lodging your application with the registry of the court.

The time limit for bringing such an action is 10 years from the date of the decision.

Disputes - Tax Conciliation Service

In the event of an ongoing dispute with SPF Finances, you can lodge an appeal with the Tax Conciliation Service (Service de conciliation fiscale). It is an autonomous service which deals with requests for conciliation objectively, independently and impartially. Its purpose is to reconcile your point of view with that of SPF Finances. The proposed solution will always be in accordance with the law.

Contact:

Service de conciliation fiscale
Avenue Roi Albert II33 boite 46
1030 Brussels
Email: conciliateurs.fiscaux@minfin.fed.be

Where can I find more information about the state of my VAT current account?

It is always possible to consult the state of your current account on MyMinfin.
More information about the VAT current account

How do I know if there is anything I should do to update my VAT dossier?

If we have to refund an amount to you but you still have unpaid debts towards the Federal Public Service Finance or a third party (implying the intervention of the SPF Finance), we will use that amount to settle your debt(s) and will therefore not (entirely) refund it to you. In that case, the FPS Finance will send you a personal letter to explain the situation.

If you have to pay an amount or if there is an amount to be carried forward, you will be informed by means of the statement of account that can be found on MyMinfin.

Read the FAQ on the website of the FPS Finance for more general information about VAT refund.

In principle, no. You cannot get your refund any faster. However, for the standard system, the refund periods are maximum periods. We can therefore refund certain amounts more quickly (particularly if there is no debt, see below).

This is never possible for the private individuals scheme (for holders of the monthly refund authorization).