Belgium: Update on VAT refund procedures and temporary measure for demolition and reconstruction

Revised VAT refund procedures and extension of the 6% VAT rate for demolition and reconstruction

Temporary measure for demolition and reconstruction

Recent developments in Belgium relating to value added tax (VAT) include the revised VAT refund procedures applicable from 1 July 2022 and a circular concerning the extension of the 6% VAT rate for demolition and reconstruction.

VAT refund procedures

The government issued Royal Decree no. 56 of 10 April 2022, replacing the existing Royal Decree no. 56 of 17 December 2009, to modernize the current VAT refund procedures for VAT taxable persons established outside the EU and to align them with those for taxable persons established in another EU Member State.

These new rules are intended to improve efficiency in the tax authorities’ administrative processes, which is particularly important in light of the expected increase in refund requests due to Brexit.

The new decree applies from 1 July 2022 with respect to refund requests submitted after 30 June 2022. 

Demolition and reconstruction

Circular 2022/C/45 extends the application of the 6% VAT rate for demolition and reconstruction until 31 December 2023.

The extension does not affect the terms and conditions of this temporary measure, which was previously applicable until 31 December 2022. Read TaxNewsFlash

Additionally, the circular contains a clarification to the term “force majeure” used in relation to social rental of dwellings.

Read a May 2022 report prepared by the KPMG member firm in Belgium



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