Belgium VAT/BTW Guide

VAT Rates

• Standard rate — 21%: Applies to most goods and services not eligible for a reduced rate or exemption. This includes electronics, clothing, household appliances, professional services (legal, consulting, accounting), new vehicles, and general consumer goods. The 21% rate is the highest standard VAT rate in the EU (tied with Hungary, Croatia, and Denmark).
• Reduced rate — 6%: Applies to essential goods and services including: (a) food and non-alcoholic beverages (excluding restaurant food which is 6% for takeaway, 12% for dine-in or 21%?), (b) water supply, (c) pharmaceutical products, (d) medical equipment for the disabled, (e) books (including e-books), newspapers, and periodicals, (f) passenger transport (public transport, taxis — not limousines or rental cars), (g) hotel accommodation, camping, holiday parks (logies / verblijf — accommodation only, not meals), (h) entry to cultural events (theatre, cinema, concerts, museums, zoo), (i) sporting events and facilities, (j) funeral services and coffins, (k) social housing (certain conditions), (l) renovation and repair of private dwellings (conditions: the dwelling must be >10 years old, the work is labour-intensive — the 6% rate applies to labour, not materials), (m) waste collection and recycling services, (n) bicycles (including e-bikes) and their repair.
• Intermediate rate — 12%: Applies to: (a) social housing construction and renovation (certain qualifying projects), (b) restaurant and catering services (dine-in meals — though takeaway is 6%), (c) margarine and vegetable fats, (d) certain agricultural services, (e) coal, coke, and firewood (heating fuels — not natural gas or electricity which are at 21%), (f) certain types of fertiliser and pesticides, (g) cannabis-based medicines (when prescribed).
• Exemptions (without credit — vrijstelling / exemption simple): Certain supplies are exempt from VAT but do NOT allow input VAT deduction. These include: (a) insurance and reinsurance services, (b) most financial services (loans, deposits, payment transactions, currency exchange, transactions in shares and other securities), (c) healthcare provided by recognised medical professionals (doctors, dentists, physiotherapists, nurses, hospitals), (d) education provided by recognised institutions (schools, universities, vocational training), (e) real estate leasing (residential rental — with option to tax for commercial property), (f) betting, lottery, and gambling (with certain exceptions), (g) postal services provided by the universal service provider (bpost).
• Exemptions (with credit — nul-tarief / exemption avec droit à déduction): Certain supplies are taxable at 0% but allow input VAT deduction. These include: (a) intra-Community supplies of goods (B2B — the "zero-rate" for cross-border sales within the EU), (b) export of goods outside the EU, (c) supplies to embassies, international organisations, and NATO forces (under certain conditions), (d) supplies of gold to central banks, (e) supplies of aircraft and ships used in international transport.

VAT Registration

• Registration threshold: Businesses whose annual taxable turnover exceeds €25,000 must register for VAT. Registration is mandatory regardless of turnover for: (a) businesses that import goods from outside the EU, (b) businesses that make intra-EU acquisitions (purchases from other EU countries exceeding €10,000/year), (c) businesses that supply services subject to reverse charge, (d) non-resident businesses that make taxable supplies in Belgium.
• KBO/BCE number: VAT registration is obtained through the Kruispuntbank van Ondernemingen (KBO / BCE) — the crossroad bank for enterprises. The company first registers at an enterprise counter (ondernemingsloket / guichet d'entreprises) and receives an ondernemingsnummer (enterprise number). The VAT number is automatically assigned — format: BE 0xxx.xxx.xxx (10 digits). The process takes approximately 5–10 business days.
• VAT grouping (BTW-eenheid / unité TVA): Closely related companies (≥50% control, establishment in Belgium, economic, organisational, and financial links) can form a VAT group. The group is treated as a single VAT taxable person — intra-group supplies are disregarded for VAT purposes, and one member files the consolidated VAT return. The group must apply to the VAT administration for approval.

Small Business Exemption Scheme (KOR)

• Kleine ondernemingsregeling (KOR) / Franchise de TVA: Businesses with annual turnover below €25,000 (excl. VAT) may apply for the small business exemption scheme. Qualifying businesses are exempt from charging VAT to customers and are also exempt from most VAT compliance obligations (no VAT returns, no listing). However, they CANNOT deduct input VAT on their purchases — the VAT on costs is a real cost.
• Application: The KOR must be explicitly applied for through the VAT administration (via the enterprise counter or directly). It is NOT automatic. The scheme can be revoked if turnover exceeds €25,000 for two consecutive years. Businesses that primarily supply exempt supplies (e.g., healthcare, education) are not eligible.

VAT Return Filing

• Frequency: VAT returns (BTW-aangifte / déclaration TVA) are filed either monthly or quarterly, depending on the taxpayer's annual turnover: (a) Monthly: turnover >€2,500,000; (b) Quarterly: turnover ≤€2,500,000 (the default). The filing deadline is the 20th day of the following month (or 20th of the month after the quarter for quarterly filers).
• Format: Filing is mandatory online via Intervat (the Belgian VAT e-filing portal) or through accounting software integrated with Intervat. The return reports: output VAT due (box 01–03), input VAT to recover (box 05), reverse charge amounts (box 47–48), intra-EU acquisitions (box 50–51), and exports/IC supplies (box 44–46).
• Payment: VAT due (net of input VAT) must be paid by the same deadline (20th). Late payment attracts interest at 0.8% per month (the "interest moratoire" / nalatigheidsinterest). Late filing penalties range from €50 to €5,000 per infraction. A first-time late filing may be forgiven with an acceptable excuse.

BTW-Listing and ICAR

• BTW-listing (CL — Client Listing): The annual client listing (BTW-listing / listing TVA) must be filed by 31 May of the following year. It lists all B2B customers (with their VAT numbers) to whom the supplier made taxable supplies exceeding €1,000 per customer during the year. The listing is filed online via Intervat.
• ICAR (Intracommunautaire Aangifte / Déclaration Intracommunautaire): The recapitulative statement for intra-EU supplies must be filed monthly (if supplies exceed €100,000/year) or quarterly (if ≤€100,000/year). The ICAR lists all intra-EU B2B supplies by customer VAT number and total value per quarter/month. The filing deadline is the same as the VAT return (20th of the following month).

Intra-EU Cross-Border Rules

• Distance selling (e-commerce): For B2C sales of goods to consumers in other EU countries, the OSS (One-Stop Shop) regime allows Belgian businesses to declare and pay VAT on cross-border B2C sales through a single portal (the "Union OSS"). The OSS eliminates the need to register for VAT in each EU country. The threshold for using OSS is €10,000 of cross-border B2C sales (if exceeded, VAT is due in the destination country via OSS or direct registration).
• IOSS (Import OSS): For B2C sales of imported goods (from outside the EU) with a value ≤€150, the IOSS allows the seller to collect and remit VAT at the point of sale, avoiding customs clearance VAT procedures. Goods sold via IOSS are exempt from import VAT. The VAT rate is the rate of the destination country.
• Reverse charge (B2B services): Cross-border B2B services (consulting, legal, IT, marketing, etc.) are generally subject to VAT in the customer's country (the "general rule" under EU VAT Directive). The Belgian supplier issues an invoice without VAT (stating "reverse charge" / "verlegd"). The customer accounts for VAT in their own country. Exceptions: services relating to immovable property (VAT in the property's country), cultural/sporting/educational services (VAT in the country where performed), passenger transport (VAT where the transport takes place).
• Intra-EU acquisition of goods: When a VAT-registered Belgian business purchases goods from another EU country, it accounts for acquisition VAT (the VAT that would be due if the goods were purchased in Belgium — 21% standard) and simultaneously recovers it as input VAT, provided the acquisition is for business purposes. The net cash flow impact is typically zero.

Agricultural Flat-Rate Scheme (Landbouwregeling)

• Landbouwregeling / Régime agricole forfaitaire: Farmers (agriculteurs / landbouwers) can opt for the agricultural flat-rate 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) or 2% (for certain products). The flat-rate compensates for input VAT on purchases without requiring the farmer to file VAT returns.
• Application: The scheme is available to farmers whose annual turnover does not exceed €112,000 (indexed). The farmer must apply to the VAT administration and use the flat rate for a minimum of 5 years. The flat-rate percentage is set by the government and adjusted periodically. Farmers who opt for the normal VAT regime cannot return to the flat-rate scheme for 5 years.

Import VAT and Customs

• Import VAT: Goods imported into Belgium from outside the EU are subject to VAT at the applicable rate (21% standard, 6% reduced) at the time of importation. Import VAT is collected by Customs (Douane / Douane). The importer can recover the import VAT as input VAT on the next VAT return, provided the goods are used for taxable business purposes.
• Customs deferment (Krediettermijn / Crédit de paiement): Businesses that import frequently can apply for a customs deferment — import VAT is not paid at the border but is declared and paid on the VAT return instead (the "verlegd" mechanism for import VAT). This reduces cash flow impact.

For related reading, see our Corporate Tax Guide →, Starting a Business Guide →, and Cross-Border Tax Guide →.