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V1129-19 22 May 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · destinatario efectivo

VAT refunds must be requested by the branch that is the effective recipient of the invoices

A Belgian company inquired whether it could continue to claim VAT refunds in Belgium for pallets when the purchase is subsequently made by its new branch in the United Kingdom. The Directorate General for Taxes (DGT) ruled that the refund must be requested by the branch, as it is the effective recipient of the transactions and the party bearing the tax burden.

The question raised

Whether the taxpayer could continue to request refunds of the Tax amounts incurred in the territory of application of the Tax in Belgium, given that the new purchaser of the pallets and the recipient of the corresponding invoices will be the British branch.

The DGT's ruling

The invoice must identify the effective recipient, who is the party holding the position of creditor in the legal relationship and is obligated to make the payment. If the branch in the United Kingdom is the new recipient of the goods and the party bearing the VAT amounts, the refund application must be processed through said permanent establishment. The procedure shall be carried out through the electronic portal of the United Kingdom, as it is the Member State where the applicant is established.

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