- Starting from January 1, 2025, Belgian tax authorities will restrict the VAT refund rights related to credit insurance, stating that if a credit insurer indemnifies a loss on the price of a VAT taxable supply, the insured supplier can only claim a VAT refund for the remaining loss after issuing a (partial) credit note.
- Previously, credit insurers could claim VAT refunds for the total loss of the insured supply price, including VAT, even if the supplier received only partial compensation; now, the insurer’s indemnification will negate the right to claim VAT refunds for the covered portion.
- This change necessitates that credit insurers reassess their pricing and business strategies, while insured suppliers must establish processes to accurately claim VAT refunds on indemnified receivables, including issuing credit notes and calculating refundable VAT amounts correctly.
Source
See also C-482/21 (Euler Hermes) – Judgment – Taxable amount and Insurance of Indemnities
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