VAT in Belgium – a complete guide. Rates and registration thresholds | VAT in Europe #16

General information of VAT in Belgium

The Belgian value-added tax was introduced in 1970. The main rules governing Belgian VAT are found in the Code of Value Added Tax (VAT Code). The Ministry of Finance that issues circulars and rulings containing detailed guidelines.

Belgium, along with 27 other EU member states, stipulates that foreign businesses (referred to as non-residents) must include their companies (excluding local branches or subsidiaries) in Belgian VAT reporting.

Should you register for Belgian VAT?

This taxation method applies to supply of goods in situations such as:

• import to Belgium,
• purchase and sale of goods within Belgium, when the customer is not registered as a local VAT payer (if registered, reverse charge applies and registration is not mandatory),
• storage of goods within the country before reselling them (here, there is also an exception in the form of reverse charge),
• organizing exhibitions, cultural events, or live training sessions in Belgium,
• sale of goods and services by foreign companies to Belgian consumers – if turnover from sales to private individuals from all EU countries exceeds 42,000 euros.

How to register for VAT in Belgium?

Foreign companies based in Belgium that require a Belgian VAT number must submit an application to the local VAT office. Foreign companies that are not residents should apply to:

Central VAT Office for Foreign Taxpayers (BCAE)

Registration Services

Rue des Palais, 48 (6th floor)

B-1030 Brussels

Website: www.minfin.fgov.be

Is a Belgian fiscal representative or agent required?

Since 2004, European Union countries can’t require foreign companies to appoint a tax representative for VAT purposes.

Enterprises from EU member states can register directly with Belgian tax authorities. However, for companies outside the EU, a fiscal representative is required, who is jointly liable for paying VAT.

What information is required to obtain a Belgian VAT number and registration?

To obtain a Belgian VAT number, you must submit an application on form 604a. The following additional information is required:

1. VAT certificate to prove the business is registered for VAT elsewhere in the EU or a certificate to prove taxable status,
2. Memorandum and Articles of Association,
3. An extract from the company’s national trade register,
4. Statement of commencement of trading,
5. Copy of order forms or contracts showing that the business will be doing business in Belgium.

Registration typically takes three to four weeks from the receipt of the above documents.

VAT returns

The frequency of VAT reporting in Belgium depends on the level of trade. The default reporting period is monthly, however, companies can apply for quarterly reporting if their turnover is below 2.5 million euros annually. There are exceptions to this rule. Enterprises are also required to submit an annual sales list presenting domestic B2B supplies, where the annual supply exceeds 250 EUR.

The deadline for submitting VAT returns in Belgium, whether quarterly or monthly, is the 20th day of the month following the end of the settlement period. At the same time, VAT must be settled, except for the December payment, which must be paid in advance by December 24th.

For quarterly taxpayers, VAT must be paid in advance on a monthly basis. Annual sales lists of Belgian B2B supplies are required by March 31st each year.

VAT in Belgium

RATE	TYPE	TYPE OF GOODS OR SERVICES
21%	standard	all goods and services not covered by the lower VAT rate,
12%	reduced	some foods, some agricultural products, some social housing, some construction work on new buildings, some energy products, such as hard coal, brown coal, and coke, some pesticides and fertilizers, some tires and inner tubes for agricultural use,
6%	reduced	some foods (including takeaway food), non-alcoholic beverages, water supplies, some pharmaceutical products, some medical devices for people with disabilities, domestic passenger transportation, some books (including e-books), newspapers and magazines (with some exceptions), admission to cultural events and amusement parks, some social housing, some repairs and renovations of private residential buildings, some agricultural products, accommodation in hotels, admission to sports events, using sports facilities, intra-Community and international road, rail, and inland waterway transportation, some mechanical vehicles (cars for people with disabilities), some social services, some funeral and cremation services, minor repairs (including bicycles, footwear and leather goods, clothing and household linen), firewood, cut flowers and cut plants for decorative purposes and food production, writers and composers, restaurants and catering (excluding all beverages),
0%	zero	some newspapers and magazines, some recycled materials and by-products, intra-Community and international transportation (excluding road, rail, and inland waterway transportation).

If you like our content, join our busy bees community on Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest, TikTok.