Country Guide - VAT in Belgium

VAT in Belgium - Three Types of Rates

There are three types of VAT rates in Belgium:

1. Standard VAT rate,

2. Reduced VAT rates,

3. Zero VAT rate.

How Much is VAT in Belgium’s Regions?

Belgium's VAT Law does not provide special VAT rates for specific regions, meaning that standard, reduced, and zero VAT rates apply in Belgium.

VAT Registration Threshold

VAT Belgium law, official guidelines, and comments from the Tax Authority and other governing bodies provide information on the VAT registration threshold and other important details.

In Belgium, a VAT exemption scheme is defined for small businesses whose annual turnover is below EUR 25,000, regardless of their legal form. However, all small businesses must be aware of some exemptions to this rule, mainly concerning specific sectors or transactions. Businesses that exceed this VAT threshold in Belgium and those operating in excluded sectors or engaging in excluded transactions must register for VAT before performing taxable activities.

The VAT registration threshold for non-resident companies is not defined in the VAT Belgium law, meaning they must register for VAT purposes as soon as they engage in taxable activities in Belgium.

As in other EU Member States, there is no registration threshold for non-EU established suppliers of electronically supplied services. Meanwhile, Belgium implemented an EU-wide EUR 10,000 threshold for intra-community distance sales of goods and B2C supplies of services.

Types of Taxable Activities in Belgium

Belgium's VAT Law provides detailed information on what is considered taxable activities. These include a supply of goods and services conducted regularly, independently, and for profit. Whether the supply is made as a part of primary or secondary business activities or where the activity occurred is not vital.

Besides the supply of goods and services, other activities such as the import of goods, intra-EU acquisition of goods, and export to non-EU countries are considered taxable activities.

VAT Registration Process

Taxable persons, like businesses and individuals engaged in taxable activities outside the scope of the small business VAT registration exemption rules, must register for VAT. 

Belgium VAT Registration for Domestic Businesses

Domestic businesses must submit two applications to complete the VAT registration procedure. First, a company number application is submitted to the Crossroads Bank for Enterprises (CBE). The second application is a request for registration for VAT purposes, which must be submitted at least two days after the CBE issues the company number but before engaging in taxable activity.

The VAT registration application is submitted online through the MyMinfin portal or by an accountant or accredited business counter.

Belgium VAT Registration for Foreign Businesses 

Foreign businesses making taxable supplies or involved in other taxable activities are not eligible for small businesses' VAT registration exemption, even if their turnover is below EUR 25,000. This means that all foreign taxable persons must register for the VAT before they carry out activities in Belgium that are considered taxable.

The process can be completed by submitting a VAT identification request form 604A to one of the relevant VAT offices or through an accredited business counter. Whether a tax representative is needed depends on whether the foreign taxable person is from another EU country or not. EU businesses do not need to use the services of the tax representative but can opt to appoint one. On the other hand, non-EU companies must appoint a tax representative.

VAT Returns in Belgium

VAT returns in Belgium are submitted monthly or quarterly, depending on the annual turnover. As a general rule, monthly VAT returns are submitted. However, taxable persons can register for quarterly VAT returns if their annual turnover does not exceed EUR 2.5 million.

Nevertheless, this rule has some limitations related to the supply of certain products. Therefore, taxable persons who are involved in the supply of energy products, mobile phone and computer devices, accessories and components for computers, and land vehicles whose annual turnover is above EUR 250,000 must file a monthly return,

Also, taxable persons engaged in intra-EU transactions and who must file an EC Sales List are not eligible for quarterly VAT returns.

VAT returns must be electronically submitted by the 20th day of the month following the reporting period, with exemptions during the summer holidays when the deadline is the 10th of August for VAT returns related to transactions in June and the 10th of September for VAT returns pertaining to transactions in July.

Penalties for Failure to File Tax Return

Taxable persons who fail to comply with the VAT return filing obligation may face severe penalties that may cause inconvenience and financial burden. The penalty amount depends on the violation type, the VAT amount due, and whether the violation is repeated.

A competent Tax Authority may issue a fine of EUR 1,000 for each un-submitted VAT return. Filing a late VAT return will penalize you with EUR 100 per return and month of delay, whereas incomplete returns may lead to a fine of EUR 80 for accidental mistakes or even EUR 300 for deliberate mistakes. Non-compliance with filing frequency or procedure might result in a fine of EUR 250 and EUR 400, respectively.

VAT Rules for Electronically Supplied Services 

Electronically supplied services (ESS), commonly referred to as digital services, digital products, or electronic services, are defined by the EU VAT Directive as services provided electronically through the Internet or similar networks, where human intervention is minimized or non-existent.

As did all other EU Member States, Belgium implemented the EU-harmonized definition of the ESS into its national legislation and all related taxability rules.

Taxability Rules for ESS:

Under the EU VAT Directive and the rules implemented in the Belgium VAT legislation, the general rules defining the place of supply are used for the B2B supply of the ESS. These rules further regulated that foreign businesses must comply with taxability rules related to the B2C supply of the ESS, which is the place where the consumer is located.

Additional rules are defined for the place of supply rules for distance sales of goods and B2C ESS, with the introduction of the EUR 10,000 EU-wide threshold. Therefore, if the supplies made are below the threshold, the supplier can apply the VAT rate of the country where they are based, for example, the VAT rate Belgium. However, once this threshold is exceeded, the supplier must apply the VAT rates of the country where the consumer resides.

How much is VAT in Belgium on ESS?

The Belgium VAT rate for ESS is 21%.

E-Commerce Rules

E-commerce rules in the EU needed to be more consistent, and they imposed additional administrative and financial burdens and costs for taxable persons operating in multiple EU countries. That is why, in 2021, a groundbreaking E-commerce reformative package was adopted and implemented, setting an EU-wide VAT regulatory framework.

Newly implemented e-commerce rules brought a uniform EUR 150 threshold for selling low-value goods imported from non-EU countries and territories. A reformatory e-commerce package also introduced a deemed supplier rule, where digital platforms are considered suppliers under specific conditions when facilitating the supply of goods.

Furthermore, the scope and rules for the Mini One Stop Shop (OSS) system were broadened, and a new Import One Stop Shop (IOSS) scheme was introduced. Therefore, MOSS was transformed into an enlarged One Stop Shop (OSS) system that has three schemes:

• Union Scheme,

• Non-Union Scheme,

• Import Scheme.

VAT EU Reporting

Belgium's national legislation requires taxable persons to submit EC Sales Lists (ESLs) and an Intrastat report once the conditions are met.

EC Sales List

VAT-registered taxable persons in Belgium must submit a Statement of intra-community operations, commonly known as ESL. ESLs are filed monthly or quarterly, depending on several conditions. If a taxable person must submit a monthly VAT return, it must submit a monthly ESL through the Intervat system. 

Consequently, if taxable persons file quarterly VAT returns, they file quarterly ESL. However, suppose the total quarterly turnover of exempt intra-EU goods supplies exceeds the EUR 50,000 threshold. In that case, the taxable person must file a monthly ESL, regardless of which VAT return they submit.

Annual Customer Listing

In Belgium, submitting an Annual Customer Listing (ASL) that contains information on all Belgium VAT-registered customers to whom businesses made taxable supplies is a special requirement if the total annual sales to those VAT-registered businesses are above EUR 250.

The ASL is an annual report that must be filed until March 31, following the reporting period.

Intrastat 

In Belgium, the Intrastat thresholds related to intra-community goods trade for arrivals are EUR 1.5 million and EUR 1 million for dispatches. Once these thresholds are exceeded, taxable persons must submit monthly Intrastat reports electronically through the National Bank of Belgium OneGate portal by the 20th of the month following the reporting period.

However, an additional special threshold of EUR 25 million is defined for arrivals and dispatches. If a taxable person exceeds these thresholds, an extended, more detailed Intrastat is required.

Digital Reporting

Local Businesses

The local government of Flanders was the first to implement mandatory B2G e-invoicing in 2017; later, all other regions implemented it. Therefore, since 2023, B2G e-invoicing has been mandatory across Belgium, with contracts below EUR 3,000 exempt.

In addition to B2G e-invoicing, Belgium's parliament adopted a mandatory B2B e-invoicing Law effective January 1, 2026. Starting January 1, 2026, all B2B transactions will be subject to compulsory e-invoicing rules.

Non-Resident Businesses

Under the current rules, non-resident businesses have no digital reporting requirements.