Can I reclaim VAT from Belgium for my business?
Whether you can reclaim Belgian VAT does not depend on the sector you operate in, but on a few simple characteristics: you are established in the Netherlands, you are a VAT taxable person, and you have paid VAT in Belgium on costs that you can substantiate as business expenses. If you meet these three criteria, you are in principle covered by the provisions of Directive 2008/9 and can reclaim the VAT paid through the Dutch Tax Authority from the Belgian tax authorities.
It does not apply to you, or only partially, if one of these points is missing. Think of entrepreneurs who have opted for the small business exemption, sectors that are exempt from VAT, or situations where the costs are attributable to an employee personally rather than to your business. Below you will see for each situation where the distinction lies.
Entrepreneurs for whom the scheme usually does apply
The scheme was designed for VAT taxable persons who normally can deduct Dutch VAT, but cannot apply that deduction because the costs were incurred in Belgium. An installation company sending a technician to Antwerp for fuel and accommodation, a consultancy setting up at a trade fair in Brussels, a transport company paying tolls on Belgian highways: these are the typical cases. The legal form makes no difference. A sole trader, a limited company and a partnership can all submit a request, as long as the business is established in the Netherlands and has a valid VAT number.
Foundations and associations can also participate, provided they are treated as VAT taxable persons and the VAT paid has not already been settled in another way. For a precise assessment of your own situation, it is advisable to submit borderline cases to a VAT specialist; vatea.eu is the service provider and information source, not a tax advisor.
Situations in which the scheme does not or only partly apply
Entrepreneurs who opt for the small business exemption are exempt from VAT and are also not allowed to deduct input VAT. The directive is intended for entrepreneurs who would be allowed to do so if the costs had been incurred in the Netherlands; for small business exempt entrepreneurs that comparison basis is missing. Something similar applies to sectors that are largely exempt from VAT, such as certain forms of healthcare, education or financial services. Although they do pay Belgian VAT, they usually cannot deduct it in the Netherlands either, and that eliminates the basis for reclamation.
Costs that are not attributable to the business but to an employee personally are also excluded from the scheme. Think of a meal that an employee has paid for out of their own pocket without it being recorded as a business expense. And businesses that are established not in the Netherlands but elsewhere in the EU are outside what vatea.eu currently serves; they can register on the waiting list.
What if you yourself do not travel to Belgium
It is not just about travelling. A Dutch business that purchases goods or services from a Belgian supplier and receives Belgian VAT on the invoice can also reclaim that VAT under certain circumstances, even without anyone physically crossing the border. Think of an invoice from a Belgian printing company, an IT service provider or a tool hire company. What matters is whether the costs are business-related and whether Belgium allows that type of cost for reclamation; the latter varies by country and is described in the Tax Authority's Requirements List.
If you are unsure whether it applies to you
Because the exceptions are often a bit more specific than the main rule, it is advisable not to decide based on intuition. With a few questions you will immediately see an indication of what your company can recover, without needing to create an account. If you encounter a situation that doesn't fit this overview, for example a mixed business that partly operates exempt and partly taxable, it's best to discuss that with a VAT specialist.
On the page where all situations per topic have been sorted out you'll find more about what is and isn't covered by the scheme, and the frequently asked questions address a number of borderline cases that entrepreneurs often bring to us. If you first want to know how we handle your data and authorization before submitting anything, you can read that on the page about how the process works.
If you recognize your situation in the main case, it won't take long to check it. The calculator and knowledge base are free and without obligation; only when money is actually granted is there a fee involved.