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Many businesses incur foreign VAT on expenses abroad, such as hotel costs, trade fairs, fuel, transport, professional services or local purchases in other EU Member States.
This foreign VAT is often treated as a cost because companies are unaware that it can, in many cases, be reclaimed through the European VAT refund procedure. As a result, substantial amounts of recoverable VAT remain unclaimed every year.
WHAT IS THE EU VAT REFUND PROCEDURE ?
Belgian taxable persons cannot recover foreign EU VAT through their Belgian VAT return.
Instead, VAT incurred in another EU Member State must generally be reclaimed through the electronic EU VAT refund procedure (Directive 2008/9/EC), commonly referred to as the “8th Directive refund procedure”.
The refund request is submitted electronically via the Belgian VAT portal and subsequently reviewed by the foreign VAT authorities.
Depending on the country concerned, additional questions or supporting documentation may be requested during the review process.
HOW CAN RSM BELGIUM ASSIST ?
Our VAT specialists support clients throughout the full refund process, including:
- Review of the foreign VAT accounts
- Assessment of recoverability
- Verification of invoices and supporting documents
- Preparation and submission of refund applications
- Assistance with questions raised by foreign VAT authorities
- Follow-up of refund status and practical coordination
Thanks to our international network and extensive VAT expertise, we can assist efficiently across all EU Member States.
IMPORTANT DEADLINE
VAT refund applications relating to expenses incurred during calendar year 2025 must generally be submitted no later than 30 September 2026.
To ensure sufficient time for review and processing, we recommend starting the analysis well in advance of the deadline.
HOW TO PROCEED?
If foreign VAT has been booked on recoverable VAT accounts or foreign VAT general ledger accounts, we recommend performing a review to determine whether a refund opportunity exists.
Our team can assist based on:
- an Excel overview of the foreign VAT amounts; and
- the corresponding purchase invoices and supporting documents.
If you would like to receive additional information on this matter or require VAT assistance, the RSM Belgium Tax team is at your disposal (tax@rsmbelgium.be).
