The main purpose of a VAT registration is to enable taxable persons that are working together very close to limit the burden of non-deductible VAT. Indeed, the establishment of a VAT unit is motivated by the legitimate and acknowledged concern to limit the VAT cost within a group of companies.

Subject to compliance with certain substantive and formal conditions, the VAT unit is useful in various situations:

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– Possibility of deducting / revising the VAT incurred on the purchase / construction of a rental property when the owner and the tenant are members of the same VAT Unit.

– Companies which exercise mandates (manager – administrator) are not required to invoice their internal operations with application of VAT.

– Exempt or mixed taxable persons (ASBL, AISBL, insurance brokers, financial institutions, real estate, etc.) can subcontract certain activities without incurring VAT.

– Etc.

The VAT unit makes it possible to erase VAT in relations between members and, in certain cases, to optimize the right to deduct. With our experience with such cases, Alternative TVA is your best partner for your VAT optimization.

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