Tax aid

Can I reclaim the VAT owed to me by the government?

All filers of monthly VAT returns (even those who do not have a monthly refund authorisation and those who are not considered as ‘starters’) will be able to benefit from an accelerated refund of the VAT credit on their current account, subject to compliance with the conditions set out below (effective date: 31 March 2020).

The other standard conditions still apply, including :

• Minimum amount of 245 euros.
• All declarations for the current year must have been filed.
• The authorities must have a bank account number for VAT refunds.
• In addition, there must be no opposition to this refund (following garnishments served and assignments of debt notified to the FPS Finance).

What about planned or future tax audits?

Due to the exceptional context linked to the management of the Coronavirus epidemic (COVID-19), the FPS Finance is postponing its non-essential / less urgent on-site control actions and is only maintaining the actions necessary to safeguard the interests of the State. The goal is to limit contacts and protect citizens and our auditors.

Audits, which can be carried out remotely, thanks in particular to the support of tax applications and on the basis of files, continue to be carried out.

In the case of continuing on-site inspections, the persons and businesses inspected are asked to cooperate fully with the officials. These checks will be carried out in compliance with the specific hygiene standards in force as part of the Coronavirus crisis.

Original documents are required for customs clearance.

What happens during this period of Covid-19 confinement?

Customs remain open as for export, stamps on the original documents (e.g. ATR, EUR1) are still required for the shipment to be accepted in the destination country. Contact your customs office or ensure that your carrier applies this method.

On the other hand, certificates and authorisations that were initially issued on paper may be temporarily sent in digital form to the verifying agent, even if a debit is required. This digital transmission must be accompanied by a statement indicating that the applicant is in possession of the original documents, which will be archived as part of the self-archiving process.

If it complies, the declaration will be accepted.

What are the tax implications if my company helps the hospital sector?

Companies that donate stocks of medical equipment to hospitals and care institutions will not have to pay VAT on these donations.

Normally, taxable persons can only deduct VAT on the sale of goods, but not on donations. From now on, VAT will no longer be payable on donations of medical equipment to hospitals or care establishments.

In addition, anyone who temporarily incurs additional costs, for example for the production of medical supplies, will be able to claim these as business expenses.

In addition, it is still possible to make cash donations to hospitals and care institutions via existing channels. Donations of 40 euros or more (cumulative per calendar year) are eligible for tax reduction.