Customs Flash (22/10/2012)
Refund of deposit for import VAT deferral license (E.T.14.000)
Last July, the Council of Ministers agreed that the license for the deferral of import VAT payment, which is often used to prevent pre-financing, will no longer require a deposit. This license allows the taxable persons to pay and deduct import VAT through the same periodical VAT return, therefore limiting any cash flow impact. Nevertheless, the payment of a warranty consisting of 1/24th of import VAT due over one calendar year was required. In order to improve the Belgian (harbours’) economic position, the Belgian government decided to abolish this warranty payment from 1 January 2013. In this regard, the VAT authorities have published a circular letter (Circular letter n° AGFisc 30/2012 (E.T.122.812) dd. 28.09.2012) covering the transition to the new regulation as well as refund practicalities.
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