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April 16, 2021
2021-0772

Belgium reduces minimum amounts for domestic VAT refunds

To support the liquidity of companies in light of the ongoing COVID-19 pandemic, Belgium has officially announced a reduction of the minimum amounts for domestic value-added tax (VAT) to the level used for a VAT refund to taxable persons established in a European Union (EU) Member State other than the EU Member State of the refund. In that respect, a Royal Decree of 29 March 20211 was published in the Belgian State Monitor of 31 March 2021.

The reduced minimum amounts of VAT refund will apply as from 1 April 2021 to a domestic VAT refund and are as follows:

  • €50 if a refund is requested in the periodic VAT declaration relating to the last reporting period of the calendar year (previously €245)
  • €400 if a refund is requested in the periodic VAT declaration relating to each of the first three calendar quarters by a quarterly declarant (previously €615)
  • €400 if a refund is requested in the last periodic monthly VAT declaration of a calendar quarter by a monthly declarant (previously €1,485)
  • €50 if a refund is requested in the periodic monthly VAT declaration by a monthly declarant authorized for monthly refunds (previously €245)
  • €50 if a refund is requested in the periodic monthly VAT declaration within the 24 months of the date of commencement of economic activity by the monthly starter (previously €245)

As the measure applies as from 1 April 2021, taxpayers are eligible for a VAT refund based on the new threshold in their periodic VAT declarations for the first quarter of 2021 or in the periodic VAT declaration for March 2021.

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For additional information with respect to this Alert, please contact the following:

Ernst & Young Tax Consultants

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ENDNOTE

  1. The full text of the Royal Decree of 29 March 2021 is available in Dutch and in French.
 

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