VAT rates in Belgium: when to charge 6%, 12% or 21%

When you’re self-employed in Belgium, there are different VAT rates depending on the product or service you sell. Most products and services are subject to the default VAT rate of 21%, but when should you be charging 6% or 12% VAT? And which products and services are exempt from VAT, meaning you need to apply a 0% VAT rate? We’ll cover all that in this article!

What is VAT?

A quick reminder: ‘VAT’ stands for ‘value added tax’. It’s a tax that has to be paid on almost all products and services sold in Belgium. 

As a self-employed person, you need to charge VAT on top of the price of the product or service you sell to your customers, and you also need to pay the VAT your suppliers charge you. 

You report to the government the VAT you’ve charged and the VAT you’ve paid. If you received more VAT than you paid, you have to pay the difference to the VAT authorities. And what if you paid more VAT than you received? In this case, you’ll get it back once you file your VAT declaration. 

💡Accountable tip: Under certain conditions, self-employed people are eligible for the VAT exemption scheme for small businesses. This means you don’t have to charge VAT to your customers, but you still have to pay VAT to your suppliers and other businesses subject to VAT. When you’re self-employed and exempt from VAT, you don’t have to file a VAT return.

VAT rates in Belgium: which one to apply?

To avoid any problems with the tax authorities, you need to make sure you stick to the rules when it comes to VAT. But when you’re newly self-employed, it’s not always easy to navigate Belgium’s different VAT rates. To make it easier, here’s an overview of the VAT rates applied in Belgium.

These depend on the products and services you offer, not on your legal status (sole trader or company) or the type of customer (private or professional).

Standard VAT rate of 21%

In Belgium, the default VAT rate is 21%. This is the rate you’ll see most often, except for a product or service included in the list of reduced VAT rates (see below).

Here are some examples of products and services subject to the default rate of 21%:

• electronic products, furniture, clothing, etc.;
• ready-to-eat drinks and snacks (e.g. crisps or waffles) in catering and hospitality establishments;
• services in beauty and hair salons;
• consultancy such as marketing and accounting, IT services, copywriting, graphic design, etc.

Reduced VAT rate of 6%: food and basic products

Certain products and services are subject to a reduced VAT rate of 6%. These are basic products and services deemed essential by the State.

If you run a catering or hospitality establishment, you’ll notice that VAT on food is generally set at this reduced rate.

You can charge 6% VAT on:

• living animals;
• meat and offal;
• fish, crustaceans, shellfish and molluscs;
• milk and dairy products, eggs and honey;
• edible vegetables, plants, roots and tubers;
• edible fruits and citrus and melon peels;
• plant-based products;
• milled products, malt and starch;
• fats and oils;
• other food products such as coffee, tea, sugar, cocoa products, sauces, soups and broths, etc. An exception is made for beers with more than 0.5% alcohol content and for alcoholic beverages stronger than 1.2%;
• takeaway food and drinks (provided it’s a simple meal, with no additional services such as table service);
• animal feed, fertiliser and products of animal origin;
• flower-growing and ornamental horticulture;
• water distribution;
• the supply of electricity, natural gas used as fuel, and heat via heat networks;
• medicines and medical devices;
• newspapers, magazines and books;
• works of art, collectibles and antiques;
• motorised vehicles for the disabled, as well as spare parts, equipment and accessories for such vehicles;
• various products, including coffins, orthopaedic appliances, walkers, wheelchairs, infusion pumps, glucometers and feminine hygiene products;
• goods and services provided by charitable organisations;
• agricultural services;
• the transportation of people, pets and unchecked baggage;
• cultural, sports and entertainment facilities;
• copyright, concert performances and exhibitions; 
• hotels and campsites;
• construction work on private housing over 10 years old;
• private housing and establishments for people with disabilities;
• social housing;
• demolition and reconstruction of residential buildings and the renovation and repair of private housing;
• minor repair and maintenance services, particularly for bicycles, shoes, leather goods, clothing and household linen;
• buildings intended for teaching and supporting students.

💡  You can find more about these products and services, and the conditions for the reduced VAT rate, in Royal Decree No. 20 (page available in French/Dutch/German) of the Belgian VAT Code.

Specific products and services at 12% VAT

As you saw above, VAT on food products is usually set at 6%, with the exception of meals consumed on site. For these, as a catering or hospitality establishment, you need to charge a VAT rate of 12%.

In addition to restaurant and catering services (with the exception of simple takeaway meals and takeaway drinks), the following products and services are also subject to a reduced VAT rate of 12%: 

• crop protection, i.e. phytopharmaceuticals;
• margarine;
• tyres and inner tubes for the wheels of agricultural machines and tractors;
• coal;
• social housing as part of a private initiative.

💡 For more information, see also Royal Decree No. 20 (page available in French/Dutch/German) of the Belgian VAT Code.

Exceptions: the 0% VAT rate 

In theory, there are two exceptions to these VAT rates. Publications appearing at least 48 times a year (such as newspapers and magazines), and recovered materials and products such as recycled paper are subject to a 0% VAT rate. This doesn’t apply to online publications.

Finally, here are some examples where VAT doesn’t have to be applied: small businesses who have opted for the VAT exemption scheme; the VAT reverse charge scheme (VAT co-contractor scheme); and the exemption of certain professions from having to charge VAT.

VAT exemption for small businesses

We already mentioned the VAT exemption for small businesses above. You can benefit from this scheme if your annual turnover doesn’t exceed €25,000 (excluding VAT).

💡 Learn more about the VAT exemption scheme for small businesses

VAT at 0% for the co-contractor

Are you subject to VAT in Belgium and carrying out work on a real estate belonging to another self-employed person subject to Belgian VAT? Under certain conditions, you have the right to reverse charge the VAT on your invoice. This means that you don’t charge VAT on your services, and the responsibility is transferred to your customer.

💡 Learn more about the VAT co-contractor scheme

VAT exemption for certain professions

Several professions are exempt from VAT due to the nature of their activity. Doctors, psychologists, libraries, nurses, physiotherapists and daycare centres, for example, apply a 0% VAT rate. 

💡  Discover the professions exempt from VAT (page in French/Dutch/German)

What if you sell products and/or services subject to different VAT rates?

You need to indicate the different VAT rates on your invoices, like you see on a VAT stub from a restaurant.

For example, if you run a campsite, you charge 6% VAT on the stay. But if you open a souvenir shop on the campsite, most of the products you sell there will be subject to a VAT rate of 21%. 

The same applies to a fruit grower: they charge 6% VAT on the fruit, but if they organise workshops on fruit growing, they have to charge 21% VAT on those. The mileage costs the fruit grower charges for travel to a customer would also be subject to 21% VAT. 

Do you have any other questions about the VAT rates in Belgium and which one you should charge? Our free blog is full of articles on VAT for people who are self-employed in Belgium. You can also ask one of Accountable’s tax coaches for advice tailored to your situation.

FAQ: Frequently asked questions about VAT rates in Belgium