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.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Tax Consultants
Marc Joostens, Brussels
Sofie Van Doninck, Brussels
Pascal Vanzieleghem, Ghent
Jan Van Moorsel, Antwerp
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
