• VAT refund

VAT refund

25 May 2022

In Circular letter no. 2022/C/54, the VAT authorities provide further explanation of the system of monthly refunds for certain taxpayers, as introduced from 01.01.2022.

In principle, a refund of a VAT credit is only possible on a quarterly basis and this for both monthly and quarterly taxpayers. VAT taxpayers who have a tax surplus of at least EUR 12,000 in the previous calendar year can obtain a license for monthly refunds. This implies that at least 30% of their turnover must consist of specific transactions, such as exempted exports and intra-Community supplies. Under certain conditions, starters can also claim an accelerated refund.

The new target group are the VAT taxpayers who fulfil public service obligations and who have to purchase goods and services for this purpose.  Public service obligations are defined or determined by a competent authority in order to cover certain supplies of goods or services in the public interest which a trader, if he were acting in his own commercial interest, would not supply or provide in the same quantity or under the same conditions without any compensation. Such public service obligations exist, inter alia, in the electricity and gas markets (as regards the environmental, technical and social aspects of energy supply), in postal services and in public transport. Here too, there must be a tax surplus of at least EUR 12,000 in the previous calendar year (or the first year in which public service obligations are to be fulfilled). Furthermore, at least 30% of this VAT credit must be attributable to the purchase of goods and services in the context of these public service obligations.  The authorisation must be explicitly requested from the VAT administration and can be withdrawn if the condition is no longer met. The refund will only be made upon explicit request with a minimum amount of EUR 50 and provided that the VAT taxpayer has submitted his declarations in time and electronically.

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