- Previously, credit insurers could claim VAT refunds for credit insurance covering the price of a supply including VAT, even if the insured supplier received only partial indemnification.
- As of January 1, 2025, Belgian tax authorities consider that no loss of the price of the underlying VAT taxable supply occurs to the extent the shortfall is indemnified by a credit insurer.
- The VAT refund right for the remaining loss may only be exercised by the insured supplier, subject to issuing a (partial) credit note to the purchaser.
- Credit insurers should review the impact of this development on their pricing and business model.
- Insured suppliers must establish a process to claim VAT refunds on indemnified receivables, including issuing (partial) credit notes and calculating the refundable VAT.
Source: jdsupra.com
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.
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