Belgium Agriculture and Farming Tax Guide

Agricultural Flat-Rate VAT Scheme

• Landbouwregeling / Régime agricole forfaitaire: Farmers can opt for the agricultural flat-rate VAT scheme. Under this scheme, the farmer does not charge VAT to customers (B2B sales are invoiced with "BTW verlegd" / "TVA non applicable") but receives a flat-rate compensation from the VAT administration — typically 6% of the selling price for standard agricultural products (milk, meat, grain, vegetables) or 2% for certain products (seeds, fertilisers, certain livestock). The flat-rate compensates for input VAT on purchases (machinery, feed, fertiliser, fuel) without requiring the farmer to file VAT returns.
• Eligibility: The scheme is available to farmers (landbouwers / agriculteurs) whose annual turnover does not exceed €112,000 (indexed). The farmer must apply to the VAT administration. The flat-rate percentage is set by the government and adjusted periodically. The farmer cannot reclaim input VAT under this scheme (the flat-rate compensation is instead of input recovery). If the farmer opts for the normal VAT regime (21% standard), they must remain in it for at least 5 years.
• Accounting: Under the flat-rate scheme, the farmer's accounting obligations are minimal — no periodic VAT returns, no BTW-listing, no ICAR. The farmer must keep: (a) a sales journal (cash register or invoice-based), (b) a purchase register, (c) a stock register (for livestock and products).

Income Tax — Forfaitaire Winstbepaling

• Deemed profit determination (Forfaitaire winstbepaling / Détermination forfaitaire du bénéfice): Many farmers use a simplified income tax regime — the taxable profit is determined by applying a deemed profit percentage to the farm's turnover, based on the type of farming activity and the size of the farm. The percentages are published by the FOD Financiën and are based on regional averages. Typical deemed profit rates: (a) dairy farming: 15–25% of turnover, (b) arable farming: 20–30% of turnover, (c) livestock (pork/beef): 10–20% of turnover, (d) horticulture: 25–35% of turnover, (e) mixed farming: 15–25% of turnover.
• Actual profit method: The farmer can opt for actual profit determination (werkelijke winst / bénéfice réel) — deducting actual costs from actual revenue. This is more administratively burdensome but may be advantageous if the farm has high costs (depreciation of equipment, livestock purchases, feed costs, fuel, wages). The actual profit method requires full double-entry bookkeeping. The farmer can switch between methods but must inform the tax authorities.

Agricultural Land Exemptions

• Onroerende voorheffing exemption: Agricultural land (bouwland / terreins agricoles) is exempt from the onroerende voorheffing (property tax). The exemption applies to: (a) land used for crop cultivation, (b) pastures and meadows, (c) orchards and vineyards, (d) land used for horticulture and market gardening. The exemption does NOT apply to: (a) farm buildings (barns, stables — these are taxed), (b) the farmhouse (the farmer's home — taxed), (c) land used for non-agricultural purposes (e.g., solar farms, recreational land).
• Inheritance tax relief for agricultural land (BOR for farming): Agricultural land transferred by inheritance or gift qualifies for the business succession relief (BOR) — the land is taxed at 3% (instead of the standard rates of 3–30% for direct line). Conditions: (a) the land is used for agricultural purposes, (b) the successor continues the farming activity for at least 5 years, (c) the land is operated by the farmer in person (the "exploitation personnelle" / "persoonlijke exploitatie"). The relief applies in all three regions (Flanders: first €1M exempt, excess at 3%; Wallonia/Brussels: first €500K exempt, excess at 3%).

Green Energy in Agriculture

• Solar panels on farmland: Farmers can install solar panels on barn roofs and unused land. The electricity can be used for: (a) the farm's own consumption (reducing energy costs), (b) grid feed-in (sold to the energy supplier — the "injectie" / "injection" regime). Green certificates are issued for each MWh of renewable electricity produced (€80–€200/MWh depending on the region). The investment deduction (20% for energy-saving equipment) applies to solar PV installations.
• Biogas from manure: The conversion of manure into biogas (via anaerobic digestion) qualifies for: (a) green certificates, (b) the investment deduction, (c) the CHP (combined heat and power) certificate system for the biogas engine. The biogas can be used to generate electricity (for the farm and the grid) and heat (for buildings and processes).
• Wind turbines on farmland: Farmers can install small wind turbines (≤10m height) on agricultural land. The electricity from the turbine is subject to the same green certificate and grid feed-in rules as solar. The investment deduction applies. Larger wind turbines (>10m) typically require a separate construction permit and are treated as commercial installations.

Social Security for Farmers

• RSVZ landbouwers / INASTI agriculteurs: Self-employed farmers (including family farm operators) are registered with the RSVZ/INASTI. The social contribution rate is approximately 22.5% on net professional income (same as other self-employed persons). However, the minimum quarterly contribution for farmers is lower — approximately €550/quarter (compared to €890 for non-farming self-employed). The reduced minimum reflects the seasonal and variable nature of agricultural income.
• Start-up exemption: New farmers can apply for the first-year exemption (reduced contributions of ~€450/quarter) and the three-year minimum contribution regime.
• Paritair Comité 144 / CP 144: Agricultural workers (employees of farms, not self-employed farmers) are covered by the PC 144 / CP 144 collective agreement. The agreement sets: (a) minimum wages for agricultural workers, (b) working hours (seasonal variations), (c) holiday pay, (d) the "getuigschrift" / "certificat" system for registering seasonal workers. The employer social security rate for agricultural workers is reduced (approximately 22% instead of 25%) to account for the seasonal nature of the work.

For related reading, see our VAT/BTW Guide →, Corporate Tax Guide →, and Renewable Energy Guide →.