VAT Refund - Canadians in Belgium

[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!

[goboatingnow]

No you will not be able to reclaim Vat on anything done.

If it was a new boat sold by a vat registered company , you could get upgrades etc included in the sale price vat free ( as you are exporting the boat ) , but this is essentially only valid at the new boat sale point

There is no such thing as a foreign VAT number. A foreign company can apply for a local or in some cases a EU wide VAT number. But this is highly specific and not normally open to private individuals not engaged in commercial trading.

Sorry you pay the vat like everyone else in the EU.

There is no provision in EU VAT law ( and VAT law is harmonised across the union ) for private individuals to recover VAT outside a number of specialised vat free/rebate schemes largely aimed at the tourist sector.

Vat legally must be applied by the seller where the goods and services are delivered locally by the supplier on the ground.

Even if you were a Belgium vat registered entity. You’d still pay the Belgian VAT , and in compliance when you make your vat returns, reclaim that purchase vat , this is only for commercial trading companies.

Sorry but despite this myth persisting, VAT is not in the main reclaimable level by ordinary private persons , except in very specific circumstances non of which apply here.

[Montanan]

Reference:

https://ec.europa.eu/taxation_customs/vat-refunds_en

Assuming you are in the EU as a tourist and not a business.


VAT refunds for non-EU tourists

EU retailers can provide a VAT refund for goods sold to non-EU tourists when exporting them. Specifically this covers:

Tourists whose permanent address or habitual residence (as stated in their passport or other recognised identity document) is not in the EU.
EU nationals living outside the EU (who can prove this with a residence permit or similar).
Conditions

The tourists must provide proof of residence (e.g. non-EU passport or residence permit)
The goods must be taken out of the EU within 3 months of being bought. The tourist must provide a stamped VAT refund document proving this.
The value of the goods bought must be above acertain minimum (set by each EU country).
Retailers can either refund the VAT directly or use an intermediary. One or other of them may charge afee, deductible from the refunded VAT amount.

https://ec.europa.eu/taxation_custom...visitors-eu_en

[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.

[boatman61]

What usually happens is you submit your claim for VAT refunds at the last port before leaving the EU.. in your case being Gran Canaria.
Go to the main Customs office and ask for the requisite forms, fill them in then return them with the receipts for the goods you are claiming for.
Don't include silly stuff, just serious items bought for the boat, this can include a Smart TV, the reasoning being it can be linked via WiFi to your nav system, AIS etc.
Usually if your claim is approved any refunds will be paid into the account you've specified on the form.
GBN claims it is a myth however I assisted an Aussie with his L380 from Les Sables to Gran Canaria including the process at the Customs office and his claim was approved.
What have you got to lose apart from a few hours.. and it's a nice walk.

[goboatingnow]

You cannot get VAT back from customs. They have no way to verify anything. There is no records they can access to verify anything you present.

Vat is retained by the seller and remitted in aggregated form to Revenue with any purchase vat deducted . This is done on a two month basis. Other then VIES information there is no identification as to what item(s) the VAT return applies too. Customs have no actual proof you paid anything or vat was collected other then your claimed piece of paper .

Again I repeat where the vessel is new and falls under the definition of an EU new means of transport rules, different rules apply and in certain circumstances VAT can be reclaimed on accessories. This is because EU vat rules make provision to encourage the sale of new EU boats ( applies to cars and airplanes ) with a new means of transports EU VAT laws specifically supports vat reclaim.

This is not the case once the boat is outside the definition of a new means of transport.

Hence if you walk into a chandlery in say Greece and buy a chart plotter you are not entitled to reclaim that vat, even if you export the item immediately.

With new means of transport , you typically either don’t pay the vat on the first place , or when you get the appropriate export documentation ( actually you get refund back fron the seller not the customs ) A prudent seller will typically retain the vat until he sees proof of import rather then an country export stamp. ( this is to ensure the goods are not taken to another EU country )

Note customs will happily verify that you have exported any goods , thd vat is refunded by the seller. It’s his neck and money in the mine. They ( customs) are happy to verify baby goods are being exported. They are not the ones returning the vat to you. The vat is returned by the seller.

The success is when you get your money not simply some customs stamp on a invoice. !!!

[boatman61]

That's why it takes 3 months.. everything has to be processed by the appropriate agency..
Just because you've never done it, nor ever can being an EU citizen does not mean it is not possible.
As I said, let him try then report back as to what happened.
Then one or the other of us can go Nah Nah Nanah..

[goboatingnow]

Originally Posted by boatman61

That's why it takes 3 months.. everything has to be processed by the appropriate agency..

Just because you've never done it, nor ever can being an EU citizen does not mean it is not possible.

As I said, let him try then report back as to what happened.

Then one or the other of us can go Nah Nah Nanah..

Sure sure as long as it’s not within new means of transport rules , sure when he actually gets the money , let us know. Again the refund is processed by the seller

Anyone buying a car across EU countries knows exactly how this plays out. It’s an identical process. It’s was something done here in Ireland 100 times a week.

[goboatingnow]

In the meantime the OP can read the IRISH EU vat recovery rules. These are the same across the the EU. Boats get a specific mention

https://www.revenue.ie/en/vat/retail...claim-vat.aspx

Or the Eu help document

Again “ yachts “get mentioned

( you’ll not be happy that private yachts accessories are specifically excluded in eu law )( same as car and airplane parts )

https://ec.europa.eu/taxation_custom...visitors-eu_en

But hey boatie let the chap in Belgium fill his briefcase with customs stamped invoices that will be subsequently refused I don’t care. I’m simply pointing out the law.

[Pete7]

Originally Posted by goboatingnow

Again the refund is processed by the seller

Indeed, the couple of times I have done this has required me to pay upfront the VAT, get the paperwork supplied by the retailer stamped on export by customs and then return it to the retailer. They use this paperwork to support their VAT account and explain why there is no payment for the items. Retailer then eventually refunds the VAT.

If you are in Belgium, and the retailer agrees to your idea because many won't, then explain you are going to depart Belgium and travel directly to the UK and do. Clear into the UK and keep the paperwork, then apply for your VAT refund. Hope that the retailer honours his part of the agreement. If it's a large amount, a good bottle of scotch will be a memorable event and add a note in with the paperwork saying you hope he liked the gift, so he/she remembers you and your scotch.

Pete

[goboatingnow]

Originally Posted by Pete7

Indeed, the couple of times I have done this has required me to pay upfront the VAT, get the paperwork supplied by the retailer stamped on export by customs and then return it to the retailer. They use this paperwork to support their VAT account and explain why there is no payment for the items. Retailer then eventually refunds the VAT.



If you are in Belgium, and the retailer agrees to your idea because many won't, then explain you are going to depart Belgium and travel directly to the UK and do. Clear into the UK and keep the paperwork, then apply for your VAT refund. Hope that the retailer honours his part of the agreement. If it's a large amount, a good bottle of scotch will be a memorable event and add a note in with the paperwork saying you hope he liked the gift, so he/she remembers you and your scotch.



Pete

I have provided two references that parts /accessories for private boats do not qualify as “ traveller qualifying products “

The retailer remains liable permanently , it could be a very expensive glass of scotch he drinks if he goofs.

Your average chandlery simply isn’t going to do this.

Vat refunds to private persons are handled through a third party ( for example WeVat in the U.K. ) They are not directly handled by the retailer.

The Eu law relating this this is called the Vat refund scheme.

I personally know one chandlery locally who misunderstood the rules ( it started as mail order then opened a shop ) his first vat audit proved very expensive, luckily he had only processed a few relatively small value returns as he treated them as he had his mail order business.

[boatman61]

My client bought his goods in France and Spain..
He submitted his claim in Las Palmas..
Do I have to leave the EU straight away from the country where I purchased goods?
No. You can buy VAT-free goods even if you are going to be visiting other EU countries before you finally return home, as long as you actually leave the EU with the goods within the time limit (3mths). You have to get your documents stamped by a customs officer at the point of exit of the EU – not necessary in the same EU country where you bought it.

[goboatingnow]

What part of

“Goods for the equipping, fuelling and provisioning of pleasure boats, private aircraft or other means of transport for private use are excluded from the scheme.”

Is unclear.

I didn’t say vat reclaim is impossible I was specifically dealing with boat stuff

If you buy a fancy camera or a pair of binoculars sure , get the right paper work and you’ll get something back

Note that the amount typically refunded is between 8% and 18% depending on the fees charged


Merely getting invoices stamped has no bearing on whether you get the money. Stamped invoices are required typically for high value qualifying products. Customs approval is not required for everything as when you submit your forms /invoices to the handling agent you provide details place of residence. That’s enough.

[Pete7]

Originally Posted by goboatingnow

What part of

“Goods for the equipping, fuelling and provisioning of pleasure boats, private aircraft or other means of transport for private use are excluded from the scheme.”

Is unclear.

I had a nice set of Mitchell all terrain tyres fitted to my landrover and the savings worth the effort. The diving kit took a bit longer but we got there in the end.

[goboatingnow]

Originally Posted by Pete7

I had a nice set of Mitchell all terrain tyres fitted to my landrover and the savings worth the effort. The diving kit took a bit longer but we got there in the end.

Indeed. I’m not saying it can’t be done in general and diving kit is not regarded as a yacht accessory.
Lots of stuff qualifies but parts for private boats don’t.

Note that the tyres should not have been refunded, someone goofed. ( it happens, I got stuff free of vat in France in 2004 claiming Yscht in transit. , the retailer didn’t know his rules well enough )