In this blog article, we take you step by step through everything you need to know about VAT deduction. So you stay up to date and save a penny by recovering that VAT. Deducting VAT, that’s win-win, right?<\/p>\n\n\n\n
Before we zoom in on the details, it is important to understand the core of VAT deduction. As a VAT subject to VAT<\/strong>, you charge VAT on the invoices you send to customers. But fortunately, you don’t have to pass that full VAT on to the government.<\/p>\n\n\n\n Why not? Well, you can deduct the VAT you paid yourself on purchases (such as materials, services or other business expenses) from the VAT charged on your sales invoices. This process is called \u2018VAT deduction<\/strong>\u2019 and ensures that VAT is not an extra cost for you as a business owner. Handy, right? \ud83e\udd1d<\/p>\n\n\n\n Not everyone has the right to deduct VAT. This privilege is reserved for an entrepreneur subject to VAT<\/strong>. Private persons, VAT exempted (turnover below EUR 25,000 on an annual basis) or professions not subject to VAT (art 44) do not have this right and must pay the VAT in full, without being able to recover it. For them, VAT is indeed an additional cost.<\/p>\n\n\nThe right to vAT deduction: for whom?<\/strong><\/h3>\n\n\n\n