If your company built up a VAT credit balance from buying fixed assets, Article 27 bis lets you request its refund. Here is how it works.

What does Article 27 bis allow?

Requesting the refund or offset of the VAT credit balance arising from the acquisition or construction of fixed assets, when it has accumulated over two or more consecutive tax periods.

Main requirements

That the balance comes from fixed assets, that it is held for the required periods, and that the formal requirements of the request before the SII are met.

Typical cases

Investment in machinery, equipment, facilities or real estate (for example, for furnished rental), where input VAT exceeds output VAT for a time.

A later obligation

If you later generate exempt or non-taxable sales, there is a restitution mechanism. It is best to project this carefully before requesting the refund.

How we help at C&C

We assess whether you qualify, calculate the amount and prepare and manage the request with the SII. It is part of our tax compliance service.

Keep reading: selling a property and income tax.

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