VAT Refund in Belgium: Who Is Eligible & How to Claim It

VAT Refund in Belgium: Eligibility, Process & How to Claim

In Belgium, registered businesses can recover overpaid VAT incurred on purchases and expenses. This involves filing VAT returns, being eligible for refunds in certain situations, and claiming refunds through the proper channels.

This guide explains the procedure for Belgian VAT refund, who is eligible, how to file, and principal requirements for domestic and overseas companies.

Overview of VAT in Belgium

Value Added Tax (VAT) in Belgium is a tax levied at every point of the value chain. VAT is levied on the supply of services and goods, and companies are required to charge VAT from final consumers on behalf of the government.

The Belgian VAT employs the standard rate at 21%, charging some of the products and services a reduced rate, subject to their character and social importance.

All enterprises engaged in tax-bearing activities in Belgium must be registered for VAT and issue VAT-approved invoices. They must collect respective rates of VAT from their clients and pass them on to Belgian tax authorities in the form of electronic periodic VAT returns.This is achieved through the country's Intervat platform, the official Belgian government online portal for VAT reporting and payment.

Although enterprises are the VAT collection intermediaries, the final tax burden remains with the buyer. Business firms are obligated to collect, report, and pay VAT appropriately, in line with strict Belgian taxation legislation.

VAT Recovery in Belgium: Set-Off and Refund Mechanisms

Under the Belgian VAT regime, businesses recover VAT in two forms, namely set-off and refund.

• Set-off refers to the deduction of the VAT paid on purchases and business expenses (input VAT) against the VAT obtained on sales (output VAT). It is a reduction of the net VAT liability of the taxpayer in the reporting period. The difference is paid over to the tax authorities by the company if the input VAT is lower than the output VAT.
• Refund is applicable where the aggregate input VAT paid by an enterprise is greater than the output VAT collected in a specified period. If the company has paid more than it has received, it is able to, when it makes the periodic VAT return, claim the surplus as repayment. Once approved by the tax authorities, the repayable amount is credited directly into the bank account of the taxpayer.

Key Considerations in the Belgian VAT Refund Process

Belgian taxpayers registered for VAT have their VAT obligations governed by a personal VAT account on the MyMinfin website. The account tracks VAT balances. When going through the process of a VAT refund, it should be noted that the following provisions apply:

• Credit Carryforward: Excess VAT credit arising from input tax in excess is automatically carried forward to the subsequent reporting period unless a refund is specifically requested.
• Refund Application Requirement: VAT refunds are not automatically made. Taxpayers have to request a refund by opting for the 'Request a refund' feature while submitting their periodic VAT return.
• Refund Application Deadline: VAT refund claims have to be made no later than 31 December of the third year after the VAT return has been submitted on which the credit first emerged. Not applying within this time frame means loss of refund entitlement.
• Third-Party Authorisation: Taxpayers may authorise a representative or third party to settle VAT refund claims on their behalf using the Mandates application, which can be accessed through the MyMinfin platform.
• Filing Frequency Effect: The frequency of filing the VAT returns and refunding VAT are both subject to the business's VAT return filing frequency, either quarterly or monthly. Frequent and accurate filings are necessary to maintain the eligibility of the business.
• Bank Account Requirement: Refunds accepted are credited directly to the taxpayer's bank account that was registered with the tax authorities upon VAT registration. It is important that these details are up to date and correct.
• Restrictions of certain expenses: The Belgian VAT code imposes partial deductibility rules on specific types of expenses. For example, passenger cars that are used for business are generally only 50% eligible for a VAT deduction. Additionally, for shared-use assets such as ICT equipment and mobile phones, VAT deductions must reflect the actual proportion of business use.

Eligibility for VAT Refunds in Belgium

Usually, businesses operating in Belgium are permitted to offset the VAT paid on company expenditures against the VAT received on sales. Where the VAT incurred on purchases exceeds the VAT received from customers, the ensuing credit balance can be refunded to the business.

But note that certain professional activities are exempt from VAT by virtue of Article 44 of the Belgian VAT Code. Consequently, companies involved solely in such activities are not eligible to deduct VAT on their expenses. The categories of exemptions are:

• Non-aesthetic medical treatment offered by physicians, dentists, and physiotherapists
• Care provided by midwives, health care assistants, and nursing staff
• Functions performed by controlled paramedical professionals, including dietitians, speech therapists, and chiropodists
• Certain socio-cultural services
• Hospital care and medical assistance services
• Transportation of sick or injured individuals using specially equipped vehicles
• Elderly care, youth welfare, and disability services
• Health insurance operations
• Educational and training services
• Libraries and cultural lending services, including the loan of books, newspapers, and other publications
• Organizing artistic and cultural events, such as exhibitions, concerts, theater performances, ballets, and film screenings
• The sale, rental, or leasing of real estate properties
• Insurance and financial services, including the provision of credit

VAT Filing Frequency and Minimum Credit Thresholds for Refunds in Belgium

In Belgium, eligibility for a VAT refund is subject to the amount of VAT credit accumulated within a given reporting period. The minimum credit thresholds differ depending on the filing frequency and reporting scheme adopted by the business. 

Standard VAT Return Schemes

VAT Return Frequency	Period	Minimum VAT Credit for Refund
Quarterly VAT Returns	First, Second, and Third Quarters	€400
	Fourth Quarter	€50
Monthly VAT Returns (Standard Scheme)	March, June, and September	€1,485
	December	€50

Monthly VAT Returns (Special Refund Scheme)

Under a designated monthly refund scheme, businesses may claim a VAT refund provided their credit balance reaches at least €50 in any month. To qualify for this scheme, the business must meet one of the following criteria:

• Conduct predominantly VAT-exempt transactions
• Operate within the real estate sector and apply a reduced VAT rate
• Fulfill public service obligations
• Supply electricity, natural gas, or heating services subject to a reduced VAT rate
• Be a newly established taxable business

Types of Purchases Eligible for VAT Refund in Belgium

Non-EU visitors to Belgium can claim a VAT refund on qualifying purchases under certain conditions. The conditions as stated by the Belgian tax authorities are the following:

• The total value of goods purchased must exceed €125 per invoice or Tax-Free Form.
• Alternatively, multiple invoices from the same retailer on the same day can be combined to reach a minimum total of €125.01.
• The acquisitions have to be specifically for private consumption and not for business or commercial use.
• The goods have to be exported from the European Union within three months after the end of the month during which the sale occurred.
• All items qualifying under the scheme should be carried in the traveler's personal baggage on departure from the EU.

Non-Refundable Goods and Services for VAT in Belgium

Some goods and services are exempt from being eligible for VAT refunds in Belgian taxation laws. The primary exclusions are:

• Tobacco items and liquor are not VAT refundable, except where they are bought for resale or are included in a taxable service package.
• Accommodation, meals, and drinks on-site are usually irrecoverable, unless given to employees or when being part of a taxable business service.
• Entertainment and reception costs, as well as goods and services that have been supplied to travel agents under the margin scheme, are excluded from VAT refund claims.
• Second-hand cars and other second-hand items bought under the margin scheme also do not qualify for VAT recovery.

Businesses and individuals entitled to a VAT refund need to be very careful when studying these exclusions to maintain compliance and avoid disallowed claims.

 

Step-by-Step Process to Claim a VAT Refund in Belgium

A VAT credit in Belgium is only refunded when the taxpayer explicitly requests it during the VAT return filing process. Below is a structured overview of how to apply for a VAT refund via the Intervat platform:

Step 1: Access and Select the VAT Return

 Log in to the Intervat platform and navigate to the “Dashboard” tab. Enter your VAT number and select “VAT return” to initiate the submission for the applicable reporting period.

Step 2: Provide Taxpayer and Filing Information

 In the “Taxpayer” section, enter your email address for communication purposes. Specify the “Period of declaration” according to your filing frequency (monthly or quarterly).

 If you are filing on behalf of another taxpayer or do not have a VAT number, complete the “Representative” section and include your national number where applicable.

Step 3: Complete Refund Information in the VAT Return

 In the “Data of the return” section:

• Tick the relevant grids to indicate your refund application.
• If you are a mixed or partial taxable person, enter a value between 1 and 99 in the “Prorata basis” field to reflect your applicable refund percentage. If left blank, it will default to 100%.
• To request a refund, select “Ask for restitution.”
• Alternatively, if you prefer to receive a paper payment form, tick “Ask payment form.”
• You may also upload supporting documents in the “Comment” section and include any relevant remarks.

Step 4: Validate, Confirm, and Submit the Application

 In the “Validation of the data entered” section, review your entries for any error messages. Address all issues, as uncorrected errors may lead to the rejection of your VAT return.

 Finally, in the “Summary of data entered & agreement” section, confirm your details and complete the process by clicking “Drawing and submission.”

VAT refund payment process in Belgium

• VAT refunds are issued directly to the bank account provided to the Belgian tax authorities.
• At the time of business registration, you are required to include your bank account details in the VAT identification form (Form 604A).
• This form must be submitted online via the e604 application, accessible through the MyMinfin platform.
• If bank details were not submitted during the initial registration, you must update your account information to ensure proper receipt of VAT refunds.

Conclusion

In Belgium, VAT refunds are not automatic and must be explicitly requested when submitting periodic VAT returns. For businesses filing quarterly returns, refunds are processed four times a year, subject to minimum credit thresholds. Monthly filers may also obtain refunds if certain eligibility criteria are met — for example, newly established businesses or those operating in designated sectors.

Refund applications must be submitted by 31 December of the third year following the VAT return in which the credit arose. Additionally, non-EU tourists can claim VAT refunds on purchases exceeding €125, provided the goods leave the European Union within three months from the end of the purchase month.

Finally, VAT refunds are paid directly to the bank account registered during VAT identification or to an updated account recorded via the MyMinfin portal. Accurate and timely management of refund requests ensures businesses and eligible individuals receive VAT credits without delays.