Belgian VAT authorities publish new Circular letter regarding late input VAT recovery
BelgiumSeven years after relevant judgments from the CJEU, the Belgian VAT authorities now (broadly) allow the recovery of input VAT beyond the standard Belgian limitation period of three years, subject however to strict conditions:
- The VAT is chargeable by the supplier (i.e. no reverse charge mechanism);
- The supplier must issue a corrective document (e.g. credit note and a new invoice) charging additional VAT;
- The initial limitation period must have expired;
- The customer must have been in the objective impossibility to recover the VAT;
- There is no fraud or negligence at the level of the supplier and the customer;
- The additional VAT is effectively paid by the supplier to the Treasury; and
- The additional VAT recovery is requested in the immediately following VAT return.
The Circular also prescribes a specific approach for corrective documents received just before the expiry of the standard limitation period. In such cases, the VAT recovery right can be preserved if the VAT administration is informed in writing before the end of the three-year limitation period and the actual additional recovery is requested in the immediately following VAT return.
Key takeaway
Although the new Circular offers a welcome confirmation of the possibility of additional Belgian VAT recovery after the expiry of the limitation period, such deduction is still subject to strict conditions and must be claimed within a very short deadline. Accordingly, taxable persons should immediately seek advice whenever they have doubts regarding the Belgian VAT charged to them by a supplier, to avoid it becoming irrecoverable.
