Which expenses allow you to reclaim VAT in Belgium?
Most purchases needed for business activities carrying a right to deduct allow you to recover some or all of the VAT paid. However, certain expenses are subject to a statutory restriction, even when incurred entirely for the business.
Deductible VAT at a glance in 2026
| Business expense | Recoverable VAT | Main conditions |
|---|---|---|
| Computers and IT equipment | Up to 100% | Business use for transactions carrying a right to deduct |
| Software, web hosting and digital services | Up to 100% | Business use, with VAT that is actually deductible |
| Office supplies and furniture | Up to 100% | Use in the business activity |
| Professional training | Up to 100% | Where VAT is charged and the service qualifies for deduction |
| Telephone, mobile phone and internet subscription | According to business use | Private use excluded |
| Electricity and other home office expenses | According to business allocation | A defensible allocation of consumption or expenditure |
| Passenger car purchase or leasing | Maximum 50% | Business use and an accepted method |
| Fuel, maintenance and repairs for a passenger car | Maximum 50% | The same restrictions apply |
| Commercial vehicle outside the passenger car cap | Up to 100% | Depending on its classification and business use |
| Restaurant expenses | Generally 0% | Limited statutory exceptions |
| Hotel and accommodation expenses | Generally 0% | Limited statutory exceptions |
| Entertainment expenses | Generally 0% | Precise classification of the expense and any exceptions |
| Low-value business gifts | Subject to conditions | In particular, one business gift worth less than €50 excluding VAT per recipient per year |
| Entirely private purchases | 0 % | No business use |
| Purchases under the small business VAT exemption scheme | 0 % | No right to deduct under this scheme |
These percentages assume that the business has a right to deduct. They do not automatically apply to every taxable person.
A purchase used entirely for business can face an additional restriction if the business carries out exempt activities without a right to deduct.
Sources: SPF Finances: article 45 du Code TVA, droit à déduction et exclusions
What is deductible VAT and how does it work?
Deductible VAT is the part of the value added tax on purchased goods and services that a business can recover in connection with its economic activity.
The principle rests on the distinction between two amounts:
- VAT due, also referred to as output VAT, is the tax the business owes the state on its taxable transactions, including its sales.
- Deductible VAT is the input tax that the business is legally entitled to deduct.
The business subtracts recoverable VAT from VAT due. It normally pays only the balance, subject to adjustments and other applicable rules.
Why can businesses recover VAT?
VAT is an indirect tax generally borne by the final consumer. Businesses collect it at successive stages of production and distribution.
The system charges VAT at successive stages while allowing input tax deduction. Each business charges VAT on sales and, where the conditions are met, deducts the VAT on its purchases.
Example: a consultant buys a computer for €1,000 excluding VAT, plus €210 in Belgian VAT. If the computer is used exclusively for transactions carrying a full right to deduct, the consultant can reclaim the €210.
The supplier is still paid €1,210 including VAT. Recovery takes place through the tax system, rather than as an immediate reduction in the sale price.
Deductible VAT and deductible business expenses: what is the difference?
VAT deductibility must be distinguished from deducting an expense for personal or corporate income tax.
The former determines how much VAT can be recovered. The latter determines how far an expense can reduce taxable business income or company profits.
Consider an invoice for €1,210 including VAT, of which €147 in VAT is legally deductible. Non-deductible VAT amounts to €63.
The cost after VAT recovery is therefore €1,063. This is not automatically an expense that is fully deductible for income tax. That treatment must be determined separately.
Mileage, a vehicle's powertrain and the type of expense can produce different results for VAT and income tax.
Who can deduct VAT in Belgium?
The right to deduct depends on the taxable person's status and transactions. Having a Belgian VAT number does not guarantee VAT recovery.
Sole traders and companies under the normal scheme
A sole trader, a Belgian limited company or another business under the normal VAT scheme can generally deduct VAT on expenses allocated to transactions carrying a right to deduct.
The legal form alone does not determine the deductible percentage.
A company and a sole trader buying the same item for the same business use therefore generally face the same VAT restrictions.
Businesses under the small business exemption scheme
A business covered by the small business exemption scheme generally does not charge VAT on transactions covered by that scheme. In return, it cannot deduct VAT on its purchases.
In 2026, this scheme is available, subject to conditions, to businesses whose annual turnover does not exceed €25,000 excluding VAT. The threshold may be adjusted when an activity starts during the year.
Example: an exempt sole trader buys a computer for €2,000 excluding VAT, plus €420 in VAT.
They pay €2,420 and cannot reclaim the €420 as VAT, even if the computer is used entirely for business.
A large investment can therefore influence the choice between the normal scheme and the small business exemption.
Read more about the Belgian small business VAT exemption: conditions and operation.
Businesses carrying out exempt activities
Certain transactions are exempt under Article 44 of the Belgian VAT Code. These include certain medical, financial, insurance and educational services, subject to the conditions for each activity.
A business carrying out only exempt transactions without a right to deduct cannot normally recover VAT on purchases connected with those transactions.
Not every transaction invoiced without VAT removes the right to deduct. Certain transactions, including exempt exports and intra-Community supplies, may retain that right.
Mixed and partially taxable persons
A mixed taxable person carries out both transactions with a right to deduct and exempt transactions without that right.
A partially taxable person carries out transactions within the scope of VAT and others outside that scope.
In these situations, recoverable VAT must reflect how purchases are allocated and the rules for the activities carried out.
Compare Belgian VAT schemes before determining the business's entitlement. VAT registration alone does not mean every purchase qualifies for deduction.
Sources: SPF Finances: Régime de la franchise de taxe · SPF Finances: assujettis mixtes, prorata général et affectation réelle
What conditions must be met to deduct VAT?
Article 45 of the VAT Code and Royal Decree No. 3 set out the main deduction rules.
Several conditions must be met to exercise your right correctly.
1. Use the goods or services for an activity carrying a right to deduct
A purchase must be linked to business transactions that carry a right to recover VAT.
This may involve an office, equipment, software, machinery or a service used for the business.
An entirely private expense does not qualify for VAT recovery.
Where an item is used both privately and for work, only the business portion can generally qualify, subject to specific restrictions.
2. Hold a compliant invoice
The invoice is an essential supporting document. It must allow you to check, in particular:
- The supplier's and customer's identities.
- The required VAT numbers.
- The invoice date and number.
- The nature of the goods or services.
- The price excluding VAT, applicable rate and VAT amount, where these particulars are required.
- The actual transaction and its connection with the business activity.
A correct invoice alone does not establish that all of the VAT is deductible.
3. Observe statutory exclusions and restrictions
Some expenses incurred for the business remain excluded from deduction.
Restaurant, hotel and entertainment expenses, and passenger cars, are among the categories requiring particular care.
These restrictions apply regardless of an expense's profitability or commercial usefulness.
4. Claim the deduction within the deadline
The right to deduct generally arises when VAT becomes chargeable. It is normally exercised in the return for the appropriate period, once the conditions are met.
The law sets an expiry period. A late deduction cannot be postponed indefinitely.
5. Be able to substantiate the percentage claimed
The tax authorities may request documents demonstrating how a purchase is actually used.
Mileage records, a contract, consumption details or a consistent allocation method may be useful, depending on the expense.
The evidence must match the user's actual circumstances.
Sources: SPF Finances: article 45 du Code TVA, droit à déduction et exclusions · SPF Finances: AR n° 3, exercice, délais et révisions du droit à déduction
Which business expenses are fully or partly deductible?
The nature of each expense determines its VAT treatment. Examine the goods or services purchased before applying a percentage.
IT equipment, software and business equipment
Computers, screens, printers, servers and software used exclusively for an activity carrying a full right to deduct can generally qualify for recovery of 100% of the VAT legally charged.
The same applies to many professional services, such as IT maintenance, website development, management services and digital hosting.
If the equipment is also used privately, the business share must be established.
Telephone, mobile phone and internet subscription
VAT on a mobile phone or internet subscription shared between private and business use is not automatically 100% deductible.
A sole trader using a phone 60% for business could recover 60% of the relevant VAT, provided that proportion can be substantiated and the corresponding right to deduct exists.
The allocation method must remain reasonable, documented and consistent with actual use.
Home office, electricity and running expenses
When the home is also a workplace, some expenses may have both private and business uses.
VAT on supplies, equipment and certain utility consumption may be recoverable to the extent attributable to the business, subject to the other legal conditions.
Example: IT equipment used exclusively in a business office need not follow the same allocation as an electricity bill covering the entire home.
The area used for work, measured consumption or another objectively relevant criterion may help justify the allocation, depending on the expense.
Property and capital goods rules sometimes require further analysis.
Training, services and subscriptions
VAT actually and lawfully charged on professional training, software, accountancy or another service may be deductible where the expense serves an activity carrying a right to deduct.
Check whether the service is actually subject to VAT. Some training or other transactions may be exempt and therefore contain no VAT to recover.
Restaurant, hotel and entertainment expenses
In Belgium, VAT on restaurant services, food and drinks consumed on the premises, accommodation and entertainment expenses is generally non-deductible.
A lunch with a client or a hotel stay on a business trip therefore does not automatically qualify for VAT recovery.
Specific exceptions exist, including certain expenses incurred for staff performing supplies or services outside the business, or where the taxable person supplies the same services for consideration under the statutory conditions.
Check the precise scope of these exceptions before claiming a deduction.
Business gifts and promotional items
VAT deduction may be possible for low-value business gifts, particularly where only one gift per business contact per calendar year is taken into account and its price is below €50 excluding VAT.
The exclusions for tobacco and certain alcoholic drinks must also be considered.
A promotional item distributed as part of a genuine advertising campaign may receive different treatment from a personal gift to a client.
Do not confuse VAT limits with income tax rules for deducting business gifts.
Sources: SPF Finances: article 45 du Code TVA, droit à déduction et exclusions · Justel: AR n° 59, cadeaux commerciaux de faible valeur · SPF Finances: circulaire 2017/C/32, cadeaux et objets publicitaires (NL)
How do you deduct VAT on a company car?
Company cars are one of the main cases of partial VAT deduction in Belgium.
The general rule is that VAT on a passenger car is deductible according to its business use, subject to a statutory cap of 50%.
This restriction applies in particular to purchases, rental, leasing, fuel, maintenance and repairs.
The 50% cap
A business using a passenger car 80% for business cannot automatically deduct 80% of its VAT.
Even where that use is substantiated, the deduction is normally capped at 50%.
Conversely, 30% business use does not entitle you to recover 50%. The cap is a maximum, not a guaranteed deduction percentage.
Example:
A maintenance invoice includes €210 in VAT:
| Business use established | Recoverable VAT |
|---|---|
| 30 % | 63 € |
| 50 % | 105 € |
| 80 % | €105 maximum |
This example assumes the business otherwise has a full right to deduct for its taxable activities.
The three methods for determining business use
The authorities accept several methods for establishing vehicle business use, subject to the specific conditions of each method.
Method 1: actual use
This establishes the proportion of business kilometres compared with total mileage.
A travel log, distances travelled and odometer readings help substantiate the calculation.
Travel between home and the usual workplace must follow the applicable rules and is not simply treated as business travel.
Method 2: the semi-flat-rate method
This uses the home-to-work distance, a standard number of days and a mileage allowance to estimate private use.
The calculation uses the following formula:
Estimated private share = [(home-to-work distance × 2 × 200) + 6,000 km] ÷ total annual mileage × 100.
The business share is then obtained by subtraction, subject to the deduction cap and the conditions for using this method.
Method 3: the 35% flat-rate method
A flat-rate method may allow a deduction percentage of 35% for qualifying vehicles.
This rate does not automatically apply to every business or situation. The method has conditions concerning the vehicles covered and consistency of the choice over time. The circular requires, in particular, a choice maintained for at least four calendar years, only one vehicle per user for this flat rate and genuine economic use. The rules on combining methods must also be observed.
Review the choice with your accountant or tax adviser.
Electric, hybrid and combustion cars: what changes?
For VAT purposes, an electric or hybrid passenger car does not automatically qualify for a larger deduction than a combustion car.
The 50% cap generally remains applicable to passenger cars, regardless of their powertrain.
Do not confuse this with corporate income tax rules for vehicle expenses, which may vary with the powertrain and acquisition date.
For a charging point, electricity supply or installation at an employee's home, examine the nature and allocation of the expense.
VAT on a commercial vehicle or van
Some commercial vehicles are outside the 50% cap applicable to passenger cars.
A van meeting the required criteria and used exclusively for business transactions carrying a right to deduct may qualify for 100% VAT recovery.
Private use can reduce that recovery. The vehicle's precise classification must also be checked; its commercial description alone does not determine it.
What VAT applies when selling a business vehicle?
Selling a company car may itself be a transaction subject to VAT.
The taxable amount and treatment depend in particular on the seller's status, the type of vehicle and the rules governing the original deduction.
The purchase deduction cap does not automatically mean that only half the resale price is subject to VAT. The sale must be assessed separately.
Sources: SPF Finances: article 45 du Code TVA, droit à déduction et exclusions · SPF Finances: circulaire 36/2015, méthodes de déduction des véhicules (NL)
How does partial VAT deduction work?
Partial deduction covers several different situations. A purchase used both privately and for business must be distinguished from an expense serving several economic activities, some of which do not carry a right to deduct.
Calculating VAT according to business use
For goods or services shared between private life and business, deductible VAT is generally limited to business use before any further restriction applies.
Assume an invoice for €1,000 excluding VAT at the standard rate of 21%.
- Price excluding VAT: €1,000.
- VAT paid: €210.
- Price including VAT: €1,210.
- Eligible business use: 70%.
If the corresponding right to deduct is fully accepted, recoverable VAT is:
€210 × 70% = €147.
Non-deductible VAT is €63. The cost after VAT recovery is therefore €1,063, without determining its income tax treatment.
The 70% figure is an illustrative assumption. It is not a statutory flat rate applicable to all purchases.
How does the general pro rata work for a mixed taxable person?
A business making both taxable transactions and exempt transactions without a right to deduct does not necessarily recover all VAT on its purchases.
The general pro rata is one of the methods provided for by Article 46 of the VAT Code.
In simplified terms, it compares turnover from transactions carrying a right to deduct with the total turnover included in that calculation.
Consider a business with the following turnover, assuming no special transactions affect the pro rata:
| Activity | Annual turnover |
|---|---|
| Transactions carrying a right to deduct | 60,000 € |
| Exempt transactions without a right to deduct | 40,000 € |
| Total | 100,000 € |
The illustrative pro rata is 60%.
For a shared purchase bearing €210 in VAT, this assumption gives a deduction of €126, subject to the actual statutory pro rata, its rounding rules and specific restrictions.
The actual use method
Actual use is another method of determining the right to deduct for mixed taxable persons.
It mainly follows how purchases are allocated and distinguishes:
- Expenses allocated to transactions carrying a right to deduct.
- Expenses allocated to exempt transactions without a right to deduct.
- Expenses shared by several categories of transaction.
Shared costs may require allocation keys or special pro rata percentages.
Using actual use involves formalities, including prior notification through the procedures specified by FPS Finance.
Note: the general pro rata, actual use and private-use allocation address different questions. You cannot freely pick a percentage from these methods to maximise recovery.
The general pro rata also requires prior notification in the situations specified by FPS Finance. Choosing actual use or the general pro rata entails information to be reported; it is not simply a discretionary setting in accounting software.
Sources: SPF Finances: assujettis mixtes, prorata général et affectation réelle
How do you calculate deductible VAT and net VAT payable?
Follow a clear order: determine the VAT legally charged, establish the deductible share, then include that deduction in the balance for the period.
Deductible VAT formula
In a straightforward case with no further restriction:
Deductible VAT = VAT charged × accepted deduction percentage ÷ 100.
Calculate the non-recoverable portion as follows:
Non-deductible VAT = VAT charged − deductible VAT.
For a purchase of €1,000 excluding VAT at 21%:
| Assumed accepted right to deduct | Deductible VAT | Non-deductible VAT |
|---|---|---|
| 100 % | 210 € | 0 € |
| 70 % | 147 € | 63 € |
| 50 % | 105 € | 105 € |
| 35 % | 73.50 € | 136.50 € |
| 0 % | 0 € | 210 € |
The VAT rate on the invoice and the deduction percentage are two different figures.
Calculating VAT due after deduction
Assume a business makes sales generating €840 in VAT due during a period.
It also has €147 in deductible VAT on its purchases.
The simplified calculation is:
€840 − €147 = €693 in net VAT payable.
This result assumes there are no other transactions, corrections or adjustments.
If deductible amounts exceed VAT due, a VAT credit may arise.
Which VAT rates apply in Belgium?
Belgium's main VAT rates are:
| Rate | Application |
|---|---|
| 21 % | Standard rate |
| 12 % | Intermediate rate |
| 6 % | Reduced rate |
| 0 % | Certain transactions specified by law |
The applicable rate depends on the goods, the service and the rules in force.
Recovery then depends on the business's right to deduct. VAT invoiced at the reduced rate of 6% may therefore be fully, partly or not at all deductible, depending on the circumstances.
To calculate a price excluding VAT, a price including VAT or the tax itself, use the Belgian VAT calculator.
The tool checks the arithmetic. It does not automatically determine whether an expense qualifies for deduction.
Read more about VAT rates in Belgium.
For an invoice with several lines and rates, use the VAT invoice calculator. It checks taxable amounts, tax and totals; expense classification and Intervat boxes must still be determined separately.
How do you claim VAT deduction in your return?
A business required to file periodic returns must include its purchases and sales in its VAT return in accordance with the tax authorities' rules.
Steps to exercise your right to deduct
The process involves several checks:
- Collect purchase invoices and the necessary evidence.
- Identify the relevant reporting period.
- Check the VAT rate and the amount legally charged.
- Determine business use and the right to deduct.
- Apply any statutory restrictions.
- Record the transactions correctly in the accounts.
- Enter the amounts in the appropriate return boxes.
- Check credit notes, adjustments and special transactions.
Box 59 covers deductible VAT on incoming transactions. Adjustments, intra-Community acquisitions and reverse charges may require other boxes.
Monthly or quarterly returns: what are the deadlines in 2026?
As a general rule, the periodic return must be filed as follows:
| Filing frequency | Usual deadline |
|---|---|
| Monthly | The 20th of the following month |
| Quarterly | The 25th of the month following the quarter |
Payment must also meet the applicable deadlines. Check actual dates in the official calendar.
In 2026, FPS Finance also changed the summer holiday arrangements for periodic returns. Late filing can affect refunds and trigger other administrative measures, even where transitional tolerance applies to certain fines.
Returns are normally submitted through the Intervat online service.
See our guide to Belgian VAT returns: calculations, deadlines and obligations.
Sources: SPF Finances: Déclaration périodique · SPF Finances: déclaration TVA, taxes déductibles
Electronic invoicing in 2026: what does it mean for deduction?
Since 1 January 2026, structured electronic invoices have been mandatory for a large proportion of B2B transactions between Belgian taxable persons within the scope of the legislation.
The structured format enables automated exchange and processing, often through the Peppol network.
To deduct VAT on a covered transaction, the buyer should normally hold a regular B2B invoice in the required format.
A simple PDF therefore does not always replace a structured electronic invoice in 2026.
The official e-invoice portal nevertheless provides for an exception based on the substantive conditions for deduction. A formal irregularity does not necessarily cause the right to be lost automatically.
Check incoming invoices for compliance and ask the supplier to correct them where necessary.
See Electronic invoicing in Belgium: obligations and Peppol.
Sources: e-facture: FAQ, droit à déduction, notes de crédit et sanctions
What is the deadline for claiming deductible VAT?
The right to deduct must be exercised within the period provided for by Belgian law.
It generally expires at the end of the third calendar year following the year in which VAT became chargeable, in accordance with the applicable return rules.
Example: for VAT that became chargeable in 2026, the ordinary deadline generally expires at the end of 2029.
Exercise the right through an admissible return filed within the relevant deadline. Merely entering an old invoice in your accounts is not enough.
Can VAT be deducted after the deadline expires?
Very narrowly defined exceptions exist.
The Court of Justice of the European Union's Biosafe judgment and Belgian Circular 2025/C/23 of 28 April 2025 address, in particular, a supplier correcting an invoice late and charging additional VAT.
Where the buyer was objectively unable to exercise the right earlier, deduction of the additional amount may remain possible under strict conditions.
This exception does not allow unrestricted recovery of VAT overlooked on an old invoice.
The amount originally invoiced generally remains subject to the normal deadline. The exceptional deduction must also follow the formalities and reporting period specified in the circular.
Late invoicing and complex adjustments should be reviewed by an accountant or tax adviser.
In the situation covered by the Biosafe circular, deduction must be exercised in the return for the period in which the corrective document is issued. The return comments must identify the amount, the document and Circular 2025/C/23. The procedure provides, in particular, for box 62 for the additional amount concerned. It does not reopen the deadline for VAT originally invoiced.
A document received in the last period before expiry requires particular care. The circular allows a signed letter received by the administration before expiry, followed by inclusion in the return for that period. Check this procedure before 31 December; simply waiting for the January filing may result in loss of the right.
Sources: SPF Finances: AR n° 3, exercice, délais et révisions du droit à déduction · SPF Finances: circulaire 2025/C/23 du 28 avril 2025, exception Biosafe
How do VAT refunds work in Belgium?
Deduction and refund are related but distinct mechanisms.
Deduction reduces VAT due for a period. A refund takes place when a VAT credit can be repaid to the business and the legal conditions are met.
When does a business have a VAT credit?
Consider a business reporting:
| Amount | Value |
|---|---|
| VAT due on sales | 1,200 € |
| Deductible VAT on purchases | 1,700 € |
| Balance for the period | −500 € |
In this example, deductible VAT exceeds VAT due by €500.
The business therefore has a €500 VAT credit, subject to the other elements of its return.
How do you request a refund?
In 2026, a refund can be requested through the relevant box in the periodic return, provided the applicable conditions and deadlines are met.
Since the VAT provision account came into operation, certain available credit balances can also be reclaimed through MyMinfin.
FPS Finance specifies a minimum threshold of €50 for VAT credit refunds under the current general rules.
Monthly filers can generally receive monthly refunds and quarterly filers quarterly refunds where the conditions are met.
The statutory refund deadline is generally no later than the second month following the period for monthly filers and the third month for quarterly filers, subject to conditions and exceptions.
An inspection or irregularity may affect the processing of the claim.
What if you forget to request a refund?
While the filing deadline is still open, it may be possible to correct the request.
Once the deadline has passed and the credit appears on the provision account, a request may be made through MyMinfin under the applicable procedure.
A credit balance therefore does not automatically trigger an immediate bank payment.
For a refund requested through the return, also check the returns for the preceding six months and that bank details were communicated to FPS Finance at least one month before the scheduled refund date. Meeting the €50 threshold is not enough on its own.
Sources: SPF Finances: Déductions et remboursement de TVA · SPF Finances: suppression du compte courant TVA et fonctionnement du compte-provisions
Can you recover VAT on purchases abroad?
Recovery depends on the supplier's country, the place where the transaction is taxed and the invoicing rules.
Business purchases in another EU country
A reverse charge may apply to an intra-Community acquisition of goods or certain B2B services.
Under the relevant mechanism, the Belgian buyer reports VAT due in Belgium and may simultaneously deduct it within the limits of its right to deduct.
This does not mean that every intra-Community transaction is automatically free of tax cost.
For invoicing rules and VAT numbers, see the intra-Community VAT guide.
Foreign VAT paid on an invoice
French, German or Spanish VAT lawfully charged is normally not deducted as Belgian VAT in a Belgian periodic return.
A business established in Belgium may, subject to conditions, claim VAT paid in another Member State through the VAT Refund procedure in Intervat.
For VAT relating to a calendar year, the application must generally be submitted by 30 September of the following year.
Each Member State applies its own rules on refundable expenses. Expenses eligible in Belgium are therefore not necessarily refundable at the same percentage elsewhere.
Purchases from a supplier outside the European Union
When a business imports goods from outside the European Union, import VAT may qualify for deduction under the applicable conditions.
Distinguish VAT from customs duties and other import costs.
Check customs documentation and the payment or deferred payment mechanism.
Sources: SPF Finances: remboursement de TVA étrangère aux entreprises belges
Three situations that may change your deduction
1. You change the use of a capital asset
A business buys equipment for its activity, then changes its allocation in subsequent years.
That change may affect the VAT originally deducted.
Some capital goods are subject to adjustment rules. The deduction allowed at purchase is therefore not always final for the asset's entire life.
The adjustment period and method vary with the type of investment.
2. You move from exemption to the normal scheme
A sole trader starts under the small business exemption, then moves to the normal scheme after annual turnover increases.
This changes their obligations and deduction opportunities.
Certain investments or goods still held may require an assessment of adjustment rules. It does not mean every old invoice automatically becomes recoverable.
Prepare an inventory of the relevant goods when changing schemes.
3. You receive a corrective invoice or credit note
An invoice may be corrected after a price change, a rate error or a partial cancellation.
The original deduction may need to be adjusted to reflect the new information.
Reconcile the original invoice, corrective document and accounting entries, then identify the applicable adjustment period and return box.
A VAT credit note should not be treated as a mere negative amount without examining its origin.
Sources: SPF Finances: AR n° 3, exercice, délais et révisions du droit à déduction
How do you substantiate deductible VAT during a tax inspection?
An arithmetically correct deduction may be challenged if its conditions are not established.
The VAT authorities may examine the actual transaction, invoices, use of the goods, methods applied and consistency of the accounts.
Documents to keep
Depending on the expenses, prepare a file containing:
- Purchase invoices and credit notes.
- Contracts, quotations and evidence of delivery or services.
- Evidence linking the purchase to the business activity.
- Calculations allocating private and business use.
- Vehicle mileage records where the chosen method requires them.
- Pro rata information for mixed taxable persons.
- Payment evidence where useful to substantiate the claim.
- Documents relating to capital assets and any adjustments.
Invoices should generally be retained for seven years from 1 January of the year following issue. Certain situations, particularly property investments subject to adjustment, may require longer retention.
For every significant purchase, be able to explain both how much VAT was recovered and why that amount was deductible.
Articles 97 and 101 of the Law of 18 December 2025 reduced the general VAT retention period from ten to seven years for VAT becoming chargeable from 1 January 2023. Property adjustment periods of 15 or 25 years and other retention obligations must be checked separately. The 2026 e-invoice guidance states seven years; some administrative pages still show the former period.
Sources: Justel: loi du 18 décembre 2025, conservation TVA (articles 97 et 101) · e-facture: Conservation des factures et original XML
Check your deduction before filing the return
Deductible VAT in Belgium does not necessarily equal all the tax paid to suppliers.
To establish the recoverable amount, a business must first check its VAT scheme, then the business allocation of each purchase and any statutory restrictions.
Passenger cars are normally subject to a 50% cap, while restaurant and entertainment expenses are generally excluded. Mixed-use expenses require a defensible allocation, and mixed taxable persons must apply the rules for their activities.
The right to deduct must also be documented and exercised within the deadline. A compliant invoice, a consistent method and current accounting records are the main safeguards for recovery.
To check the amounts on your invoices, use the free Belgian VAT calculator. For complex tax treatment, contact an accountant or tax adviser.