How vat / sales tax works in Belgium
Belgian VAT (BTW/TVA) defaults to 21%, with traders charging output tax, deducting input tax, and filing monthly returns as the general rule with quarterly access below the turnover line.
A 12% intermediate rate covers restaurant food and social housing, 6% covers basic groceries, books, medicines, water, and transport, and green reforms moved fossil heating to 21% while heat pumps enjoy temporary 6%.
Domestic B2B e-invoicing via Peppol is mandatory from January 2026, with an annual client listing reconciled against customers' filings and a EUR 25,000 small-business exemption track.
Tax rates at a glance
- Standard VAT
- 21%
- Reduced VAT
- 12% / 6%
- Restaurant food
- 12%
- Zero rate cases
- 0%
- Small-business shelter
- EUR 25,000
- Filing default
- Monthly
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersFreelancersExpatsFoundersHospitality operators
Watch out for
- Mixed hospitality bills split three ways — food at 12%, alcohol at 21%, takeaway staples at 6% — so single-rate invoicing fails every audit.
- The annual client listing cross-checks supplier filings against customer records, which makes unreported B2B sales visible by construction.
- Green rate moves from July 2025 re-priced heating and renovation work, so multi-year construction contracts need rate-change clauses.
- Exempt-track traders lose input recovery and face re-entry conditions, which penalises asset-heavy businesses that elect shelter for simplicity.
Frequently asked questions
What is the VAT rate in Belgium?
Belgium applies 21% standard VAT in 2026, with 12% for restaurant food and social housing and 6% for groceries, books, medicines, and transport.
Is e-invoicing mandatory in Belgium?
Yes for domestic B2B transactions from January 2026, via the Peppol network. Monthly filing remains the general rule with quarterly access below the turnover line.
Do small Belgian businesses charge VAT?
Not below EUR 25,000 of turnover under the exemption track, though exempt traders cannot recover input VAT. Registration follows from the first taxable activity above that.