VAT in Belgium guide

VAT rates

The term “taxable supplies” refers to supplies of goods and services that are liable to a rate of VAT, including the zero rate.

In Belgium, the following VAT rates apply:

• Standard rate at 21%
• Reduced rates at 6%
• 12% Zero rate (0%)

The standard rate of VAT applies to all supplies of goods or services, unless a specific measure provides for a reduced rate, the zero rate or exemption.

Belgium VAT for digital service providers

In case of digital services, telecom services or broadcasting services supplied in a B2B context, the place of supply is the place where the recipient is established. No Belgian VAT should be charged, and reverse charge applies unless supplier and customer are established in Belgium. In case of digital services, telecom services or broadcasting services supplied in a B2C context we refer to the section on the One-Stop Shop below for more information.

One-Stop Shop

On 1 July 2021 EU has introduced a so-called “One-Stop-Shop” (OSS) system which has replaced a previously applied “MiniOneStopShop” (MOSS) system. OSS has extended the scope of MOSS from digital goods and services to all goods and services sold B2C in the EU. OSS is an electronic portal that simplifies VAT compliance for online sellers, i.e., online businesses that sell goods and/or services in the EU are now only required to register for VAT in one EU country for all their B2C sales in the EU. If such sellers’ B2C sales in EU are above the applicable threshold, which is 10.000,00 EUR throughout the EU, businesses are liable to charge, collect and remit VAT in the Member State where their B2C buyers are located, instead of the Member State or country of their incorporation, i.e. online sellers have to apply the VAT rate of the Member State where the goods are dispatched or where the services are supplied. AS each EU Member State has an online portal where businesses can register for OSS and submit their VAT returns in one Member State for their B2C sales throughout the EU, it is estimated that VAT compliance costs will be significantly reduced. Registration in the OSS system is available for both – taxable persons established in the EU and outside the EU.

VAT rates

The term “taxable supplies” refers to supplies of goods and services that are liable to a rate of VAT, including the zero rate.

In Belgium, the following VAT rates apply:

• Standard rate at 21%
• Reduced rates at 6% and 12%
• Zero rate (0%)

The standard rate of VAT applies to all supplies of goods or services, unless a specific measure provides for a reduced rate, the zero rate or exemption.

VAT Registration in Belgium

The obligation for VAT registration in Belgium might be triggered in different ways. Here is the the list of most common scenarios:

• Importing goods into Belgium from non-EU countries;
• Buying and selling goods in Belgium (excluding domestic reverse charge);
• Selling the goods from Belgium to customers in other countries (B2B or B2C);
• Acquiring goods in Belgium from another EU country (Intra-community acquisitions);
• Holdinging and storing inventory in Belgium for selling, distribution or consignment;
• E-commerce sales of goods to Belgium consumers, subject to Distance Selling VAT registration thresholds;
• Organising events in Belgium where attendees or delegates are paying admission.

Late – registration penalties

A penalty ranging from EUR100 to EUR500 is assessed for late VAT registration. If the late registration results in the late payment of VAT, an administrative fine of 10% to 20% calculated on the VAT due and late payment interest at a rate of 0.8% per month may be imposed.

Fiscal representative Belgium

Non-EU business which are selling in Belgium will have to appoint a fiscal representative for the VAT registration and compliance in Belgium.
Fiscal representative is jointly liable for the VAT compliance duties for non-EU companies.
Need a Fiscal Representative Service in Belgium? 1StopVAT can provide it together with other Global VAT/GST/Sales tax compliance services.