VAT Refund - Canadians in Belgium

[Pete7]

I think the best thing for the OP to do is ask. They, the retailer and the local customs can only say no. Shame it's Belgium, their customs have a reputation for causing a storm in a tea cup over stuff like a drop of red diesel

[boatman61]

In my opinion he should wait and make his claim at the port of exit.. as I understand it VAT is paid into a central location every quarter and that's where the refunds are sourced from..
But I could be wrong..

[Elephant Shoes]

Thanks everyone - this is very helpful! Really appreciate all the insights.

[goboatingnow]

Originally Posted by Pete7

I think the best thing for the OP to do is ask. They, the retailer and the local customs can only say no. Shame it's Belgium, their customs have a reputation for causing a storm in a tea cup over stuff like a drop of red diesel

Sure it's not there isnt any legal text

Oh wait

Here's the direct piece for the EU Difective covering VAT

CHAPTER 6

Exemptions on exportation

Article 146

1. Member States shall exempt the following transactions:

(a)

the supply of goods dispatched or transported to a destination outside the Community by or on behalf of the vendor;

(b)

the supply of goods dispatched or transported to a destination outside the Community by or on behalf of a customer not established within their respective territory, with the exception of goods transported by the customer himself for the equipping, fuelling and provisioning of pleasure boats and private aircraft or any other means of transport for private use;



What part of " with the exception of ....equipping .....a private boat " is difficult to follow,Yiu can't reclaim vat on bits for boats.

[Montanan]

Originally Posted by goboatingnow

The last post shows the danger of how this myth continues


Read through that link

“Can I buy goods VAT-free from any shop?

No. Shops do not have to offer a VAT-free facility. Those that choose to do so must make the appropriate arrangements with the tax authorities.”

This is the scheme where tourist shops selling fancy stuff can join a vat refund scheme. You then fill out a standard form BUT you still fund the VAT, until either at the airport or by sending the form back to a commercial processing agent ( not customs ) who check the details , and pay a proportion of the vat back.


It is not used by 99% of traders in normal life, as there is a considerable processing cost on the seller and some countries limit the sectors.

Shops CAN offer VAT relief but do NOT HAVE to.

[Montanan]

As to the Canary Islands, they are a mixed jurisdictional territory of Spain: They are part of the EU territory and Customs rules do apply, but EU VAT rules DO NOT apply to the Canary Islands, not do the Excise Tax rules.


https://ec.europa.eu/taxation_custom...territories_en

Best check to see if one can obtain EU VAT relief on the islands, or if one needs to pursue in Spain proper.

Taxation always a bit of complex and detailed subject.

[Pete7]

Originally Posted by goboatingnow

What part of " with the exception of ....equipping .....a private boat " is difficult to follow,Yiu can't reclaim vat on bits for boats.

"Sir is claiming a VAT refund for new lithium batteries for his lighting studio I see. That's fine, here is your stamped form, please ensure you leave the country promptly and have a safe trip"

Originally Posted by Montanan

As to the Canary Islands, they are a mixed jurisdictional territory of Spain:

Hence the suggestion of getting out of Dodge quickly and the UK will do quite nicely for this. Chaps from the colonies are always most welcome in the yacht club

[goboatingnow]

Originally Posted by Pete7

"Sir is claiming a VAT refund for new lithium batteries for his lighting studio I see. That's fine, here is your stamped form, please ensure you leave the country promptly and have a safe trip"




Hence the suggestion of getting out of Dodge quickly and the UK will do quite nicely for this.

You may engage in as much fraud as you like , equally EU CUstoms can require yiu to demonstrate the equipment , ie show it to him ...oops
Of course as you quickly scoot into the UK Yiu are then required to declare said items and of course pay all UK vat on them. !!!! assuming you live there. No free lunch I'm afraid

Yiu can also claim for that expensive camera , leave the custom Union waters and then return , vat free for 18 months. Great stuff why bother with warm beer and rain.
Ymmv

[goboatingnow]

Originally Posted by Montanan

As to the Canary Islands, they are a mixed jurisdictional territory of Spain: They are part of the EU territory and Customs rules do apply, but EU VAT rules DO NOT apply to the Canary Islands, not do the Excise Tax rules.


https://ec.europa.eu/taxation_custom...territories_en

Best check to see if one can obtain EU VAT relief on the islands, or if one needs to pursue in Spain proper.

Taxation always a bit of complex and detailed subject.

Canaries has IGC a different form of local vat. But you still can get your forms stamped as the canaries ARE in the EU customs union. Hence are part of Spain for export customs functionality

[goboatingnow]

Originally Posted by Montanan

Shops CAN offer VAT relief but do NOT HAVE to.

Sigh , read on about boats

[goboatingnow]

Originally Posted by boatman61

In my opinion he should wait and make his claim at the port of exit.. as I understand it VAT is paid into a central location every quarter and that's where the refunds are sourced from..
But I could be wrong..

Sorry no central fund , vat Isn't administered like that

The only person who refunds is the person that took the vat in the first place , the retailer normally.

Funds don't come from revenue, they don't know what you paid vat against.

[boatman61]

Hence why you hand in receipts along with the forms.. each receipt has a story.
Shop, VAT Number, Payment method, Date, Goods, Price of Goods, VAT charged.

[goboatingnow]

Originally Posted by boatman61

Hence why you hand in receipts along with the forms.. each receipt has a story.
Shop, VAT Number, Payment method, Date, Goods, Price of Goods, VAT charged.

Vat is not collected individually from retailers on an item by item sale by sale basis. Revenue don’t know exactly what vat relates to what. Retailers remit VAT every two months , as a combined payment.

The fill out an EU standardised information set ,

Total vat on sales
Total vat on purchases
They pay the difference as a lump sum.

They also provide 4 categories ,
Sales of inter community goods and services
Sales of extra community goods and services
These are just euro totals


If they export , they will also have to make a VIES report , this details the EU goods categories that apply

None of this identifies to Revenue , that Mr BoatCash , bought a RayBling chart plotter for Xxx plus VAT.

Revenue hence don’t refund and can’t verify anything you present to them dependently from their records

All they do is verify the goods presented were exported from the customs union , that’s all. The details you mention are needed to ensure the official can explicitly confirm the item in question was or is being exported.
He doesn’t care about the validity of your claim, or the amount of vat. that’s not his role.

You then , depending on the country , then have to make a claim , that claim eventually makes it back to the retailer , either directly or through a designated intermediary , who charges you a fee.

The retailer is then instructed to return the vat to you. He will then balance that in his next two monthly vat returns.

In some countries revenue has cooperated with intermediaries , with participating retailers the intermediate will directly pay out the vat , often at major airports. This is typicality for small value transaction ie under 2000 euros

Furthermore while vat law is harmonised ( almost all other EU tax law isn’t ) , it’s collection is not centralised and is country specific. Portugal can’t collect Spanish vat etc. Nor can Portugal return vat collected in Spain.

15% of all vat goes to fund the EU it’s the primary way the EU raises its own tax. By the way ( ie Maggies Millions)

[sailone3032]

Originally Posted by Elephant Shoes

Hi all - we are Canadian and recently purchased a boat in the Netherlands. We are doing a significant electrical and battery upgrade in Belgium this spring before starting the journey westward (plan is to be in the Canaries by September 2022 and in the Caribbean in January 2023). I am trying to sort out if we can claim a VAT refund for the VAT on the parts that are being installed (lithium batteries and other components). My understanding is that the VAT on the service portion of the installation is not refundable but I am hoping there is some way to claim a refund for the VAT on the parts/components since the boat will be leaving the EU. I have seen recent threads on this topic with respect to Spain (which suggested that a refund is unlikely) but just thought I check in hopes that the answer might be different for Belgium.

It was also suggested to me that if the boat is owned in a corporation, it may be possible to get a "foreign VAT number" which would allow the installers to delivery the parts/components without charging VAT. I haven't been able to find any information online on that.

Any info would be much appreciated!

Thanks!

I am in the same position as you in that I have a boat in the Netherlands and I am Canadian. For my first season in the EU after buying the boat I was boarded by the customs in the Netherlands. They issued me a temporary import certificate for the boat valid for 18 months. I am currently having the batteries upgraded to Lithium as well. I provide the temporary import certificate to the yard they only charge the VAT on the labour and not the equipment.

[Montanan]

Originally Posted by goboatingnow

Canaries has IGC a different form of local vat. But you still can get your forms stamped as the canaries ARE in the EU customs union. Hence are part of Spain for export customs functionality