VAT in Belgium: Rate, Process, Liability, Payment and Returns

Value Added Tax (VAT) in Belgium serves as the primary consumption-based or indirect tax. It is applied at each stage of the supply chain, with consumers paying VAT on goods and services. Businesses are responsible for collecting and remitting VAT via the Intervat platform. Belgian VAT rates vary, ranging from 0% to 21%. 

This article about VAT guides you through this specific tax system in Belgium. Let’s understand VAT rates, registration, return filing, and common challenges.

What Is VAT Belgium?

Value Added Tax or VAT in Belgium is an indirect tax applied to most goods and services consumed in the country. It is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to sale. 

In Belgium, VAT is paid by consumers who purchase goods and services. But businesses, which act as intermediaries, collect VAT for the government. They remit it through regular returns. The VAT amount is typically added to the sale price. Ultimately, the consumer has to pay it by the end.

For instance, if a retailer sells a piece of furniture priced at €100 with a 21% VAT rate, the final price the consumer pays would be €121. Here, the additional €21 represents the VAT. The retailer then collects this €21 VAT on behalf of the government and submits it through their regular VAT returns. 

In Belgium, VAT rates vary from 0% (for certain goods and services) to a standard rate of 21%. There are also reduced rates of 6% and 12% for specific categories.

How VAT Works in Belgium

If your business is in Belgium, VAT registration is mandatory. In Belgium, this consumption-based, indirect tax applied at each stage of the supply chain. While it’s ultimately borne by the end consumer, businesses are responsible for collecting and remitting it to the government. 

When a consumer purchases a product or service, the VAT amount is added to the sale price, collected by the supplier, and paid by the consumer. Businesses acting as intermediaries must register for VAT, generate VAT-compliant invoices, collect the tax from their customers, and remit it through regular VAT returns. This system ensures a continuous VAT collection process at each step in the supply chain, with consumers ultimately bearing the tax cost.

VAT Liability

A Belgian or non-Belgian business becomes liable for VAT if it supplies goods or services as defined in the Belgian VAT Code. This VAT liability applies when the supply:

• is conducted regularly
• is performed independently
• does not depend on profitability
• is either a main or secondary activity
• occurs regardless of the location of the economic activity

If a business’s activities are fully VAT-exempt (such as specific socio-cultural activities, financial transactions, or medical sector transactions) and it has no right to deduct VAT, it is not required to register or charge VAT to customers.

VAT Exemptions in Belgium

Businesses engaged only in VAT-exempt activities don’t need to charge VAT to customers. They also don’t have to file periodic returns. If your business performs only these activities, VAT registration is not required. Some of the common exemptions are as follows:

• Non-aesthetic medical services by doctors, dentists, or physiotherapists
• Services by midwives, healthcare assistants, and nurses
• Services by approved paramedical professions (such as dietitians, speech therapists, chiropodists)
• Specific socio-cultural activities
• Hospital care and medical assistance
• Transport of sick or injured persons using specially equipped vehicles
• Elderly care
• Youth welfare
• Disability support
• Health insurance fund operations
• Educational services
• Library services (loaning books, newspapers, etc.)
• Organising cultural events (exhibitions, concerts, theatre, ballet, films)
• Sale, rental, and leasing of real estate
• Insurance activities
• Financial services, such as credit granting

Note: If a VAT-exempt business performs intra-community acquisitions or supplies services across EU borders, it must still register for VAT in Belgium. Moreover, if you have a non-Belgian business without a physical establishment in Belgium and it engages in taxable transactions in Belgium, you still need to register it for VAT in Belgium.

VAT Rates in Belgium

Belgium applies multiple VAT Belgium rates based on the type of goods and services provided:

VAT Registration in Belgium

Here’s how businesses can register for VAT in Belgium:

1. Businesses, including sole proprietors, companies, and associations, must have a company number from the Crossroads Bank for Enterprises (CBE).
2. After company registration, apply for VAT registration using form 604A.
3. Submit the form at least two days after obtaining the company number, but before starting business operations. Here are the methods of submission:
   1. Online via MyMinfin
   2. Through an accountant
   3. At an accredited business counter
4. Once processed, the business receives a VAT number Belgium, also called VAT identification number. A VAT number Belgium example that follows the Belgium VAT number format could be BE0999999999 / BE1999999999.

VAT Payment and Returns Filing

Businesses subject to VAT tax Belgium with the right to deduct it must file periodic VAT returns. These returns are filed monthly or quarterly. More specifically, the general requirement is the submission of monthly VAT returns. However, you may opt for quarterly VAT returns under certain conditions. These include:

• Your business’s turnover does not exceed EUR 2,500,000 (excluding VAT).
• Your business’s turnover does not exceed EUR 250,000 (excluding VAT) for supplies of:
• Energy products (mineral oils or products used as fuel)
• Mobile telephony devices, computers, peripherals, accessories, and components
• Land vehicles with an engine subject to registration regulations

Periodical VAT returns must be filed by the 20th of the month following the reporting period (month or quarter). Returns should be submitted electronically via the Intervat platform. If electronic submission is not possible due to IT limitations or technical issues, manual submissions may be allowed with a written explanation provided to the tax office.

Some businesses, however, are exempt from filing periodic VAT returns, including:

• Businesses under the VAT exemption scheme.
• Businesses operating under the special agricultural scheme.
• Companies exclusively providing VAT-exempt services under Article 44, such as some medical or educational services.

VAT Implications for Online Sales in Belgium

For companies engaged in online sales, Belgium VAT rules bring unique obligations:

• Cross-Border Sales: For goods and services sold to consumers in the EU, VAT is charged based on the buyer’s location. This follows the EU VAT One-Stop-Shop (OSS) framework.
• Low-Value Imports: The one-stop-shop system simplifies VAT declaration and payment. It applies to goods imported from outside the EU valued below EUR 150. With IOSS, customers know the total cost, including VAT, at checkout. This helps avoid surprise charges on delivery.
• Electronic Interfaces: Platforms that enable distance sales to EU buyers, like marketplaces, must collect and remit VAT in Belgium. This ensures smooth VAT compliance for small consignments.

E-Invoicing and VAT

Starting from 1 January 2026, businesses will be required to generate e-invoices in accordance with Belgium’s new mandate for electronic invoicing. The structured electronic invoice will become mandatory, with Peppol-BIS being introduced as the standard format. However, an alternative format, within the European EN 16931 standard, may be used if mutually agreed upon. PDF invoices will no longer be accepted.

This change will have a significant impact on the VAT process in Belgium, as all business transactions will need to be reported to the government in real time, including details of purchases, sales, and VAT input and output.

Common VAT Challenges in Belgium

VAT regulations in Belgium come with its own set of challenges:

• Foreign companies often face a complex VAT registration process. They need to coordinate with local authorities and follow specific application steps.
• Businesses with both taxable and VAT-exempt activities may struggle with VAT recovery. They must determine which expenses qualify.
• Managing VAT on cross-border sales and services in the EU is complicated. Rules vary based on transaction type and the buyer’s location.
• Belgium’s VAT reporting requires careful attention. Businesses must handle periodic returns, special declarations for intra-community transactions, and strict invoicing standards.

Conclusion

In Belgium, VAT rates are 21% (standard rate for most goods and services), 12% (intermediate rate for specific items like food and agricultural products), 6% (reduced rate for items like pharmaceuticals and public transport), and 0% (zero rate for certain newspapers and specific transport services). 

Businesses in Belgium must register for VAT tax Belgium if they supply taxable goods or services. Non-Belgian businesses must also register if they perform taxable transactions in Belgium. Exemptions exist for businesses engaged solely in VAT-exempt activities (such as medical services and education).

Businesses can register via the Crossroads Bank for Enterprises and submit form 604A before starting operations. They must file monthly or quarterly VAT returns via the Intervat platform by the 20th of the month following the reporting period.