Deduction of VAT related to the decontamination of industrial sites
In answer to a parliamentary question, the Belgian Minister of Finance declared that if certain requirements are met, the input- VAT related to the decontamination of industrial sites can be deducted.
In order to determine whether input VAT paid over decontamination costs of polluted sites is deductible, one needs to determine a direct and immediate relation between the decontamination costs and a transaction subjected to VAT during a later stage.
More practically this regulation implies that, if the site is used afterwards for the economic activity of the taxpayer or maintained in the patrimony of the taxpayer with the intention to be used afterwards, the input VAT is deductible. If the taxpayer however decides to sell the site as a VAT exempt delivery of immovable goods, no right to deduct will originate for the input VAT related to the decontamination costs of an industrial site.
