Belgium IIT snapshot

What are the current rate(s) of indirect tax?

Standard rate of 21% for most goods and services.
Reduced rate of 12% for some goods and services including restaurant and catering services (drinks excluded), coals and solid fuels derived from coal, phytopharmaceutical products, margarine, tyres for agricultural machines, housing as part of social policy.
Reduced rate of 6% applies for most food and drinks, pharmaceutical products and medical aids, external defibrillators, personal hygiene protection, printed newspapers, magazines and books (including illustrated ones), original works of art, automobiles for disabled persons, renovation works with respect to old buildings (at least 10 years old), renting of furnished lodgings with or without breakfast by hotel operators, the granting of the right to enter institutes for cultural, sport or entertainment purposes (eg concert tickets).
Zero rate applies to a very limited number of goods (under certain conditions: newspapers and magazines appearing at least 48 times a year, scrap and recycling products).

What are the current rate(s) of indirect tax?

Are there any confirmed or anticipated changes to these rates?

Standard rate of 21% for most goods and services.
Reduced rate of 12% for some goods and services including restaurant and catering services (drinks excluded), coals and solid fuels derived from coal, phytopharmaceutical products, margarine, tyres for agricultural machines, housing as part of social policy.
Reduced rate of 6% applies for most food and drinks, pharmaceutical products and medical aids, external defibrillators, personal hygiene protection, printed newspapers, magazines and books (including illustrated ones), original works of art, automobiles for disabled persons, renovation works with respect to old buildings (at least 10 years old), renting of furnished lodgings with or without breakfast by hotel operators, the granting of the right to enter institutes for cultural, sport or entertainment purposes (eg concert tickets).
Zero rate applies to a very limited number of goods (under certain conditions: newspapers and magazines appearing at least 48 times a year, scrap and recycling products).

In 2021 only temporarily changes to Belgian VAT rates took place due to specific COVID Measures taken. At this moment it is still not 100% sure, whether some of these measures will still be extended to 2022. In this respect, Belgium implemented:

a VAT rate of 0% from 1 January 2021 until 31 December 2022 to the supply, intra-Community acquisition and importation of COVID-19 in vitro diagnostic medical devices, COVID-19 vaccines, as well as to services closely linked to those devices and vaccines.
an extension of the reduced 6% VAT rate until 30 September 2021 for the supply and intra-Community acquisition of the following items: face masks referred to in CN codes 4818 90 10 00, 4818 90 90 00, 6307 90 98 10, 6307 90 98 91, 6307 90 98 99 and 9020 00 00 80; and hydro-alcoholic gels referred to in CN codes 2207 20 00, 3808 94 10, 3808 94 20 and 3808 94 90. The importation of the concerned face masks and hydro-alcoholic gels is VAT exempt and no import duties apply until 31 December 2021.
a reduced VAT rate of 6% applied for restaurant and catering services from 8 May 2021 until 30 September 2021.
a reduced rate of 6% for the supply of all beverages for direct consumption on site (e.g. in bars) (except for alcoholic beverages – still subject to a VAT rate of 21%).

Other VAT rate changes in 2021:

Reduced rate of 6% applies to the supply of anti-bedsore equipment in Belgium as from 10.07.2021.

What are the current rate(s) of indirect tax?

What is the principal indirect tax?

Standard rate of 21% for most goods and services.
Reduced rate of 12% for some goods and services including restaurant and catering services (drinks excluded), coals and solid fuels derived from coal, phytopharmaceutical products, margarine, tyres for agricultural machines, housing as part of social policy.
Reduced rate of 6% applies for most food and drinks, pharmaceutical products and medical aids, external defibrillators, personal hygiene protection, printed newspapers, magazines and books (including illustrated ones), original works of art, automobiles for disabled persons, renovation works with respect to old buildings (at least 10 years old), renting of furnished lodgings with or without breakfast by hotel operators, the granting of the right to enter institutes for cultural, sport or entertainment purposes (eg concert tickets).
Zero rate applies to a very limited number of goods (under certain conditions: newspapers and magazines appearing at least 48 times a year, scrap and recycling products).

Value Added Tax (VAT) is the principal indirect tax in the Belgium. It is a tax on consumer expenditure and is collected on business transactions, imports and intra-EU transfer of own goods (eg stock transfer).

What are the current rate(s) of indirect tax?

Is there a registration limit for the tax?

Standard rate of 21% for most goods and services.
Reduced rate of 12% for some goods and services including restaurant and catering services (drinks excluded), coals and solid fuels derived from coal, phytopharmaceutical products, margarine, tyres for agricultural machines, housing as part of social policy.
Reduced rate of 6% applies for most food and drinks, pharmaceutical products and medical aids, external defibrillators, personal hygiene protection, printed newspapers, magazines and books (including illustrated ones), original works of art, automobiles for disabled persons, renovation works with respect to old buildings (at least 10 years old), renting of furnished lodgings with or without breakfast by hotel operators, the granting of the right to enter institutes for cultural, sport or entertainment purposes (eg concert tickets).
Zero rate applies to a very limited number of goods (under certain conditions: newspapers and magazines appearing at least 48 times a year, scrap and recycling products).

In principle, no. However, for companies established in Belgium there is a special regime, the so-called small enterprises regime. Small enterprises whose annual turnover is below €25,000 (excl. VAT) can benefit from a VAT exemption on the performed supplies of goods and services (without VAT deduction right). Some goods and services and sectors are excluded from the special regime (eg immovable work sector, hospitality sector, tobacco products).

What are the current rate(s) of indirect tax?

Does the same registration limit apply to non-established businesses?

Standard rate of 21% for most goods and services.
Reduced rate of 12% for some goods and services including restaurant and catering services (drinks excluded), coals and solid fuels derived from coal, phytopharmaceutical products, margarine, tyres for agricultural machines, housing as part of social policy.
Reduced rate of 6% applies for most food and drinks, pharmaceutical products and medical aids, external defibrillators, personal hygiene protection, printed newspapers, magazines and books (including illustrated ones), original works of art, automobiles for disabled persons, renovation works with respect to old buildings (at least 10 years old), renting of furnished lodgings with or without breakfast by hotel operators, the granting of the right to enter institutes for cultural, sport or entertainment purposes (eg concert tickets).
Zero rate applies to a very limited number of goods (under certain conditions: newspapers and magazines appearing at least 48 times a year, scrap and recycling products).

No. In principle there is no registration limit for businesses that are not established in Belgium and they will need to register as soon as they start to make taxable transactions. However, for occasional/one- off transactions a simplified procedure exists, with a license for non-registration and filing of a special (one-off) VAT return.

For businesses involved with ‘distance sales’ and / or Telecommunication, Broadcasting and Electronic services to Belgian consumers (B2C), a EU threshold of €10,000 (excl. VAT) applies since 1 July 2021, as from which the supplier must either register for VAT purposes in all concerned EU Member State(s) where they perform said supplies or has to register via the new EU-OSS registration system.

What are the current rate(s) of indirect tax?

How often do returns have to be submitted?

Standard rate of 21% for most goods and services.
Reduced rate of 12% for some goods and services including restaurant and catering services (drinks excluded), coals and solid fuels derived from coal, phytopharmaceutical products, margarine, tyres for agricultural machines, housing as part of social policy.
Reduced rate of 6% applies for most food and drinks, pharmaceutical products and medical aids, external defibrillators, personal hygiene protection, printed newspapers, magazines and books (including illustrated ones), original works of art, automobiles for disabled persons, renovation works with respect to old buildings (at least 10 years old), renting of furnished lodgings with or without breakfast by hotel operators, the granting of the right to enter institutes for cultural, sport or entertainment purposes (eg concert tickets).
Zero rate applies to a very limited number of goods (under certain conditions: newspapers and magazines appearing at least 48 times a year, scrap and recycling products).

In principle, a monthly VAT return should be submitted. In case the annual turnover realized in Belgium does not exceed €2.5 million (€250,000 for specific business sector), then quarterly VAT returns may be filed (by option). However, if the turnover for the intra-Community supplies exceeds €50,000 in one quarter, a monthly VAT return (and ESL return) should be submitted in any case.

What are the current rate(s) of indirect tax?

Are penalties imposed for the late submission of returns/payment of tax?

Standard rate of 21% for most goods and services.
Reduced rate of 12% for some goods and services including restaurant and catering services (drinks excluded), coals and solid fuels derived from coal, phytopharmaceutical products, margarine, tyres for agricultural machines, housing as part of social policy.
Reduced rate of 6% applies for most food and drinks, pharmaceutical products and medical aids, external defibrillators, personal hygiene protection, printed newspapers, magazines and books (including illustrated ones), original works of art, automobiles for disabled persons, renovation works with respect to old buildings (at least 10 years old), renting of furnished lodgings with or without breakfast by hotel operators, the granting of the right to enter institutes for cultural, sport or entertainment purposes (eg concert tickets).
Zero rate applies to a very limited number of goods (under certain conditions: newspapers and magazines appearing at least 48 times a year, scrap and recycling products).

Yes. If a VAT return(s), EU Sales Listing(s) or Annual Sales Listing(s) and/ or corresponding payment(s), is(are) submitted too late a penalty and/or late payment interests can be imposed.

What are the current rate(s) of indirect tax?

Are any other declarations required?

Standard rate of 21% for most goods and services.
Reduced rate of 12% for some goods and services including restaurant and catering services (drinks excluded), coals and solid fuels derived from coal, phytopharmaceutical products, margarine, tyres for agricultural machines, housing as part of social policy.
Reduced rate of 6% applies for most food and drinks, pharmaceutical products and medical aids, external defibrillators, personal hygiene protection, printed newspapers, magazines and books (including illustrated ones), original works of art, automobiles for disabled persons, renovation works with respect to old buildings (at least 10 years old), renting of furnished lodgings with or without breakfast by hotel operators, the granting of the right to enter institutes for cultural, sport or entertainment purposes (eg concert tickets).
Zero rate applies to a very limited number of goods (under certain conditions: newspapers and magazines appearing at least 48 times a year, scrap and recycling products).

For EU-trade: an additional return (Listing) need to be filed for supplies made to taxable customers registered for VAT in another EU country (the so-called ‘European Sales Listing – ESL-return’). Since 1 January 2020, such ESL return should also be prepared and filed for other situation such as for goods falling under the “EU call-off stock simplification”.
In addition thereto, also a statistical declaration for EU sales of goods will have to be submitted if certain thresholds are met for the arrival of goods in Belgium from other EU Member States (so-called intrastat arrival) or dispatch of goods in Belgium to other EU Member States (so-called intrastat dispatch).
For local Belgian trade: an additional declaration has to be submitted for local sales in Belgium, invoiced to a taxable customer with a Belgian VAT number (the so-called Annual Sales Listing – ASL-return).
For Non-EU trade : customs formalities will have to be fulfilled related to goods moving from a third country to the EU or from the EU to a third country (export or import declaration).

What are the current rate(s) of indirect tax?

Are penalties imposed in other circumstances?

Standard rate of 21% for most goods and services.
Reduced rate of 12% for some goods and services including restaurant and catering services (drinks excluded), coals and solid fuels derived from coal, phytopharmaceutical products, margarine, tyres for agricultural machines, housing as part of social policy.
Reduced rate of 6% applies for most food and drinks, pharmaceutical products and medical aids, external defibrillators, personal hygiene protection, printed newspapers, magazines and books (including illustrated ones), original works of art, automobiles for disabled persons, renovation works with respect to old buildings (at least 10 years old), renting of furnished lodgings with or without breakfast by hotel operators, the granting of the right to enter institutes for cultural, sport or entertainment purposes (eg concert tickets).
Zero rate applies to a very limited number of goods (under certain conditions: newspapers and magazines appearing at least 48 times a year, scrap and recycling products).

For a range of errors and omissions resulting in non-compliance with the VAT rules, administrative VAT penalties can be imposed.

In principle, a non-reduced legally foreseen proportional penalty amounting to 200% of the VAT will be imposed (in case of for example non-payment of VAT due, irregular recovery of VAT, non-issue of sales invoices or issue of incorrect sales invoices, incorrect import documents etc…).

However this legally foreseen penalty can be reduced by Royal Decree foreseeing two types of VAT penalties:

(reduced) proportional penalties
lump-sum penalties. In addition to the penalties as mentioned above, interest for late payment are charged at 0.8% per month. Please note that in case of a spontaneous VAT regularization (ie prior to any intervention/question from any tax authority) no proportional penalty will be imposed.

The lump-sum penalties are generally between €50 and €5,000, per type of formalistic infraction. For example for late/incorrect filings of VAT returns, European Sales Listings, Annual Sales Listings etc

What are the current rate(s) of indirect tax?

Can the tax incurred by overseas businesses be claimed if they are not registered in your country?

Standard rate of 21% for most goods and services.
Reduced rate of 12% for some goods and services including restaurant and catering services (drinks excluded), coals and solid fuels derived from coal, phytopharmaceutical products, margarine, tyres for agricultural machines, housing as part of social policy.
Reduced rate of 6% applies for most food and drinks, pharmaceutical products and medical aids, external defibrillators, personal hygiene protection, printed newspapers, magazines and books (including illustrated ones), original works of art, automobiles for disabled persons, renovation works with respect to old buildings (at least 10 years old), renting of furnished lodgings with or without breakfast by hotel operators, the granting of the right to enter institutes for cultural, sport or entertainment purposes (eg concert tickets).
Zero rate applies to a very limited number of goods (under certain conditions: newspapers and magazines appearing at least 48 times a year, scrap and recycling products).

In certain circumstances and subject to certain conditions (when no taxable turnover in Belgium) a VAT refund request can be submitted by both EU (procedure under Directive 2008/09/EC) and non-EU businesses (13th Directive 86/560/EEC).

For both EU and non-EU businesses the request should be submitted before 30 September of the year following the year of the expenses. In Belgium it is not required that the concerned non-EU country would allow a similar VAT refund of incurred ‘non-EU VAT’ for a Belgian company (no reciprocity condition).

What are the current rate(s) of indirect tax?

Does a non-established person need to appoint a fiscal representative in order to register?

Standard rate of 21% for most goods and services.
Reduced rate of 12% for some goods and services including restaurant and catering services (drinks excluded), coals and solid fuels derived from coal, phytopharmaceutical products, margarine, tyres for agricultural machines, housing as part of social policy.
Reduced rate of 6% applies for most food and drinks, pharmaceutical products and medical aids, external defibrillators, personal hygiene protection, printed newspapers, magazines and books (including illustrated ones), original works of art, automobiles for disabled persons, renovation works with respect to old buildings (at least 10 years old), renting of furnished lodgings with or without breakfast by hotel operators, the granting of the right to enter institutes for cultural, sport or entertainment purposes (eg concert tickets).
Zero rate applies to a very limited number of goods (under certain conditions: newspapers and magazines appearing at least 48 times a year, scrap and recycling products).

Only companies established outside the EU are obliged to appoint a responsible (fiscal) representative. EU companies can choose between a direct VAT identification and appointing a responsible (fiscal) representative.