Belgium Covid relief measures: permanent reduction of VAT refund minimum amounts, and temporary import VAT exemption of certain products.
VAT refund minimum amounts are cut down to facilitate the reimbursements, and import VAT and custom duties are exempted until 30 June 2022 for certain Covid-19 dedicated products.
In the context of Covid relief measures, Belgium tax authorities announced the permanent reduction of the VAT refund minimum amount for the application via VAT return, as well as abolishment of the annual VAT prepayments. Also, as part of the temporary measures, they have also recently announced the extension of the exemption of import VAT and customs duties until the 30 June, 2022 in Belgium applicable to certain products imported for fighting Covid-19.
Minimum amounts for VAT refund
Following the amendment of Belgium VAT Law, which included the abolishment of the annual VAT prepayment, the minimum amounts for requesting a VAT refund via VAT return in Belgium were also reduced. The aim is to help businesses to cope with the negative consequences of Covid-19 pandemic, facilitating VAT reimbursements in order to improve companies’ cash flow.
When a Belgium VAT return is in refund or credit position, in principle this amount is carried forward to the next reporting period unless a VAT refund request is expressly made. In order to be able to claim back that VAT, the VAT credit must reach the minimum amounts set by the tax authorities for this purpose. The new minimum amounts after the amendment of the VAT Law are:
- 50 EUR if the VAT credit is requested within the last reporting period of the calendar year – instead of EUR 245.
- 400 EUR if the VAT credit is requested in the quarterly VAT returns of the first 3 quarters of the year – instead of EUR 615.
- 400 EUR if the VAT credit is requested in the last month of a calendar quarter by a monthly taxpayer – instead of EUR 1,485.
- 50 EUR if the VAT credit is requested by a monthly taxpayer when in possession of the authorization for monthly VAT refunds – instead of EUR 245.
- 50 EUR if the VAT credit is requested within a monthly VAT return within the first 24 months since the start of activity.
These new minimum amounts for VAT reimbursements are applicable since April 2021.
Minimum amounts for VAT reimbursements reduced to 50 EUR to 400 EUR depending on the reporting period of the year when they are requested.
These new threshold for VAT refund via VAT return are now harmonized to the VAT refund thresholds via 8th Directive – VAT refund claims submitted by EU companies without a Belgium VAT number.
Import VAT and custom duties exemption for Covid-19 fight products
This measure implies that at least until the end of June 2022 – unless new prolongation of the measure is announced, imports made in Belgium concerning products for fighting Covid-19 are not subject to the payment of import VAT and custom duties.
This measure prevails concerning the previous VAT rate reduction for
- 6 % for the imports of mouth masks and hydroalcoholic gels.
- 0 % for the import of vaccines against Covid-19 and of in vitro diagnostic medical devices for this disease.
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