News article

Planned Changes to VAT Rates in Belgium

Following last week’s budget negotiations, the Belgian government announced several adjustments to VAT rates. The VAT on hotel accommodations and similar lodging services, as well as on the rental of camping pitches, will increase from 6% to 12%.

The VAT rate for sports and leisure activities will also rise from 6% to 12%. Initially, cultural activities were considered as well, but the government ultimately decided not to increase the current 6% VAT rate for culture. We now await further clarification in the legislative texts to understand where exactly the boundary with cultural services will be drawn.

In addition, the government plans to align the VAT treatment of take-away meals and non-alcoholic beverages with that of dining on-site. This means the VAT on these take-away items will increase to 12%. Conversely, the VAT on non-alcoholic drinks consumed on-site—for example in restaurants—will be reduced from 21% to 12%. Here too, we are waiting for detailed legislation to clarify the distinction between 12% VAT on take-away and the 6% rate applicable to food products intended for home consumption. The government may look to the French system as a reference.

Alcoholic beverages will continue to be subject to the standard 21% VAT rate.

Finally, the VAT on pesticides will increase from 12% to 21%.
For natural gas, there will (for now) be no VAT increase. However, excise duties on natural gas—as well as on heating oil, diesel, and petrol—will rise, while excise duties on electricity will be reduced.