|Standard VAT Rate||Digital Reporting Requirements / E-invoicing||VAT on Cross-Border Electronically Supplied Services||Tax Authority Website|
|21%||Yes||Yes||General Administration of Taxation (Algemene Administratie van de Fiscaliteit)|
VAT Rates in Belgium
The standard Value Added Tax rate (local names are Belasting over de toegevoegde waarde (BTW) and Taxe sur la valeur ajoutée (TVA)) in Belgium is 21%, with some services exempt from Belgium VAT such as banking and financial transactions. Examples of supplies subject to reduced rates are listed below.
|VAT Rates||Rate Type||Description|
|21%||Standard Rate||All goods and services not qualifying for one of the reduced VAT rates.|
|12%||Reduced Rate||Social housing and certain renovation works on immovable property, restaurants, and catering services (excluding the provision of beverages).|
|6%||Reduced Rate||Basic necessities, such as food and pharmaceuticals, some printed materials and electronic publications, transport services of persons, accommodation, and use of cultural, sporting, and entertainment venues.|
|0%||Zero Rate||Intra-Community supply of goods, export of goods to non-EU countries, etc.|
VAT Registration Thresholds in Belgium
- VAT registration threshold for domestic established sellers: No VAT registration threshold.
- VAT registration threshold for non-established sellers: No VAT registration threshold.
- VAT registration threshold for intra-EU distance selling of goods and B2C telecommunications, broadcasting & electronic services (TBE): EUR 10,000 (net) per calendar year
- VAT registration threshold for non-resident, non-EU based suppliers of Electronically Supplied Services (ESS): No registration threshold
Belgian VAT Number Format
For individual TIN corresponds to the "Numéro National” (NN), which is attributed when a registration on the National Register of Persons is made. It consists of eleven digits and is a unique number of identification for every registered person.
For companies, the number corresponds to the “Business number - Numéro d’entreprise - Belgische ondernemingsnummer”. The Belgian VAT ID is composed of 12 characters. It starts with the country code "BE" followed by 10 numbers being a company registration number. The first number after the country code is always either a 0 or 1.
- For individualsFormat: 11111111111
- For businessesFormat: BE1000000000/BE0111111111
VAT on Electronically Supplied Services (ESS) in Belgium
Digital Services in the European Union (EU) is often referred to as electronically supplied services (ESS). Belgium applies the harmonized EU VAT rules for ESS.
- For B2B supplies of such services, the general place of supply rule for services has to be taken into consideration.
- For B2C supplies, the EU ESS rules should apply to foreign companies selling to Belgian consumers.
Under the EU’s B2C ESS rules, until the sales value reaches EUR 10,000 (including distance sales of goods), the seller can charge VAT where it is resident. Once the sales exceed the threshold, the seller should register for VAT in Belgium, or it can choose to account for the VAT under the EU’s One Stop Shop (OSS) regime.
- One-Stop Shop: Effective 1 July 2021, a supplier can choose to account for the VAT due under the EU One-Stop Shop (OSS), which can be used for intra-EU cross-border supplies of goods and all cross-border supplies of services made to final consumers in the EU.
VAT Rate: 21% VAT is typically applied to the sale of affected digital services/ Electronically Supplied Services.
|Examples of taxable ESS in Belgium|
|Website supply, web-hosting, distance maintenance of programs and equipment|
|Supply of software and updating thereof|
|Supply of images, text, and information and making available databases|
|Supply of music, films, and games, including games of chance and gambling games, and of political, cultural, artistic, sporting, scientific, and entertainment broadcasts and events|
|Supply of distance teaching|
Will your business need to pay VAT on digital services in Belgium in 2023?
Marketplace & Platform Operator Rules in Belgium
Belgium applies the harmonized European Union’s (EU) VAT rules for marketplace & platform operators.
Supply of goods
A marketplace is deemed to have received and supplied the goods themselves. This transaction is split into two supplies:
- A supply from the underlying supplier to the marketplace (deemed B2B supply)
- A supply from the marketplace to the final customer (deemed B2C supply).
This rule covers the following:
- Distance sales of goods imported to the EU with a value not exceeding EUR 150
- Supplies of goods to customers in the EU, irrespective of their value, when the underlying supplier is not established in the EU (both domestic supplies and distance sales within the EU are covered).
Supply of services
When electronically supplied services are sold through an intermediary, e.g. a marketplace for applications, the intermediary is deemed to have received and supplied the services themselves. Therefore, the VAT liability shifts to the intermediary from the underlying supplier.
Invoice Requirements in Belgium
The following invoice content should be required in Belgium:
- Document & general transaction information
- Date of issuance
- Date of the transaction, if different
- A unique sequential number
- Supplier information
- Name, full address, and VAT number
- Customer information
- Name, full address, and VAT number
- Financial transaction information
- Description and breakdown of the goods or services - quantity, discounts, unit price excl. VAT
- Net amount
- The VAT rate(s) applied, and the amount of VAT broken out by rate
- Additional information that may be required:
- Group VAT number
- VAT exemption reference
- The term “reverse charge” or “self-billing”
- Name, address, and VAT number of the fiscal representative
E-Invoicing & Digital Reporting for Belgium
The Belgian Government has introduced Business-to-Government (B2G) e-invoicing in phases. The timeline to implement the B2G e-invoicing mandate is as follows:
|November 2022||Public contracts equal to or greater than EUR 215,000 for products and services|
|May 2023||Public contracts equal to or greater than EUR 30,000 for products and services|
|Nov 2023||Public contracts below EUR 30,000|
Currently, e-invoicing is optional for Business-to-Business transactions (B2B), however, the Belgian government is actively pushing for future adoption.
Governmental Body Responsible for E-invoicing and Digital Reporting in Belgium
VAT Payments and Returns in Belgium
Full VAT Returns
|VAT Return Name||Form 625|
|Filing Frequency||Monthly (or quarterly, if the turnover is less than EUR 2.5 million, taxpayers may opt to submit returns on a quarterly basis)|
|Online filing||Mandatory to be filed electronically using the web application INTERVAT, with a few exceptions, where paper-based submissions are also accepted|
|Filing deadline||Periodical VAT returns should be filed at the latest on the 20th of the month following the month or the quarter concerned|
|Payment deadline||Periodical VAT payment should be made at the latest on the 20th of the month following the month or the quarter concerned|
|Language||Dutch, French, German|
|Local VAT acronym||Belasting over de toegevoegde waarde (BTW) or Taxe sur la valeur ajoutée (TVA)|
Belgium does not provide simplified VAT returns for VAT-registered non-resident taxpayers supplying qualifying electronically supplied services. Instead, they can avoid VAT registration in Belgium and use the EU One-Stop Shop (OSS) return.
Penalties in case of late filings or misdeclarations
In the case of late filing of VAT returns and payments, the Belgian Tax Authority enforces the following penalties:
- Failure to submit VAT return: EUR 1,000 per VAT return
- Late submission of VAT return: EUR 100 per month it is late (with a maximum of EUR 1,000)
- Late payment of VAT: fine equal to twice the tax paid late and a late payment interest of 0.8% per month is due
- For any intentional breach of the obligation to pay VAT i.e. fraud, the fine is equal to twice the VAT amount evaded.