Circular 2024/C/80 Impacts Credit Insurers and Insured Parties from 2025

• New Belgian circular issued on December 11, 2024, changes VAT refund rules for credit insurers and insured parties
• Circular 2024/C/80 follows the EU Court ruling in the Euler Hermes case on February 9, 2023
• The circular specifies that VAT cannot be recovered in cases of total or partial loss of receivables covered by credit insurance contracts
• Previously, under certain conditions, credit insurers could recover VAT on irrecoverable receivables and insured parties could reclaim VAT on reimbursed amounts
• Starting January 1, 2025, these VAT recovery options will be abolished
• The changes mean credit insurers cannot recover VAT on paid claims and insured parties cannot reclaim VAT on reimbursed portions
• These adjustments will likely impact the financial operations and pricing strategies of credit insurers and necessitate changes in VAT refund procedures for insured parties
• Affected parties are advised to revise contracts, adjust pricing, and update administrative processes to comply with the new rules

Source: vat-consult.be

---

Click on the logo to visit the website

---

 

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---