Belgian VAT regimes — VAT Code and Royal Decrees

The VAT Code (Act of 3 July 1969) and its implementing Royal Decrees (No. 1, No. 19, No. 56) frame four main rates and around a dozen special regimes. Beyond the rate itself, the mandatory PEPPOL-BIS 3.0 structured invoice on 1 January 2026 demands rigorous precision on the VAT category and exemption reason codes.

VAT rates: 21 / 12 / 6 / 0%

Applicable rates are determined by amended Royal Decree No. 20 of 20 July 1970, with a detailed nomenclature per product (annexes to RD No. 20).

<cac:TaxTotal>
  <cbc:TaxAmount currencyID="EUR">42.00</cbc:TaxAmount>
  <cac:TaxSubtotal>
    <cbc:TaxableAmount currencyID="EUR">200.00</cbc:TaxableAmount>
    <cbc:TaxAmount currencyID="EUR">42.00</cbc:TaxAmount>
    <cac:TaxCategory>
      <cbc:ID>S</cbc:ID>
      <cbc:Percent>21</cbc:Percent>
      <cac:TaxScheme>
        <cbc:ID>VAT</cbc:ID>
      </cac:TaxScheme>
    </cac:TaxCategory>
  </cac:TaxSubtotal>
</cac:TaxTotal>

Special regimes

Alongside ordinary rates, the VAT Code provides several special regimes that alter the tax base, the reporting frequency or the very nature of taxable status.

• SME franchise (art. 56bis). Threshold EUR 25,000 excl. VAT/year since 2014, lowered to zero for certain sectors. The taxable person does not charge VAT but does not deduct either. Must nonetheless mention on invoice: "Special franchise regime for small enterprises".
• Flat-rate regime (art. 56). Calculation of VAT due on the basis of a sectoral flat rate (baker, butcher, forester, hairdresser). Being phased out since 2020, closed to new entrants in 2022, total abolition planned for 31 December 2027.
• Margin scheme (art. 58). Second-hand goods, antiques, art and collectibles. VAT base is the gross margin (sale price minus purchase price). No input VAT deduction. Applied especially at antique dealers and on used cars at dealerships.
• Agricultural regime (art. 57). Special flat rate for non-taxable farmers: they do not charge VAT but benefit from a flat-rate compensation of 2% or 6%.
• Travel agencies regime (art. 29bis). VAT due on the margin realised by the agency on the overall customer price, not on the total ticket price.
• OSS/IOSS regime (One-Stop-Shop). For cross-border EU e-commerce since 1 July 2021. Quarterly declaration via Intervat.

Reverse charge — art. 51 §2 VAT Code

The reverse charge mechanism transfers VAT reporting and payment from the supplier to the taxable customer. List of cases governed by art. 51 §2 VAT Code and Royal Decree No. 1:

• Construction works (art. 20 RD No. 1). Building construction, demolition, connections (gas, water, electricity). Counterparty must be VAT-registered in Belgium. The most frequent case.
• Subcontracting in agriculture, wood, slaughter (art. 20bis RD No. 1).
• Waste and recovery materials (annex RD No. 1) — scrap metal, sorted household waste.
• Green certificates and CO2 certificates — since 2010 to combat carousel fraud.
• Telecom services, computer and telephony equipment — since 2013 (anti-carousel scheme on smartphones and processors).
• Investment gold (art. 44bis VAT Code).

<!-- Reverse charge BTP - art. 20 Royal Decree No. 1 -->
<cac:TaxCategory>
  <cbc:ID>AE</cbc:ID>
  <cbc:Percent>0</cbc:Percent>
  <cbc:TaxExemptionReasonCode>VATEX-EU-AE</cbc:TaxExemptionReasonCode>
  <cbc:TaxExemptionReason>Reverse charge - article 20 of Royal Decree No. 1 of 29 December 1992</cbc:TaxExemptionReason>
  <cac:TaxScheme>
    <cbc:ID>VAT</cbc:ID>
  </cac:TaxScheme>
</cac:TaxCategory>

Mandatory invoice mentions

Art. 5 of Royal Decree No. 1 of 29 December 1992 lists the mandatory invoice mentions. As 1 January 2026 approaches, these mentions must all be structured in the UBL PEPPOL-BIS 3.0 (BT-* fields of standard EN 16931):

Zero rate vs exemptions

Fundamental distinction in Belgian law:

• Operations exempt with right of deduction (art. 39 to 42 VAT Code) — exports, intra-EU deliveries, international transport. PEPPOL code: Z (zero rated).
• Operations exempt without right of deduction (art. 44 VAT Code) — medical and paramedical care, education, social and cultural services, banking and insurance operations, residential property rentals. PEPPOL code: E (exempt).
• Operations outside the scope of application — subsidies, donations, indemnities. No VAT as no supply. PEPPOL code: O (outside scope).
• Goods and services subject to VAT in another EU country — intra-EU B2B deliveries. PEPPOL code: K (IC supply).

Reporting and Intervat declaration

• Monthly return: turnover > EUR 2,500,000 excl. VAT/year. Filing via the Intervat portal before the 20th of the following month.
• Quarterly return: turnover < EUR 2,500,000 excl. VAT/year. Filing before 20 April/July/October/January.
• Annual listing of taxable customers: art. 53quinquies VAT Code. Before 31 March of the following year, declaration of all Belgian taxable customers for whom turnover exceeds EUR 250/year.
• Intra-Community listing: monthly or quarterly, declaration of IC deliveries and acquisitions.
• Intervat: FPS Finance portal for all tele-declarations, accessible via eID, itsme or Belgian eID Card certificate.

Cross-links

• Belgium hub — full e-invoicing mandate
• Royal Decree of 20 March 2025
• PEPPOL-BIS 3.0 Belgium
• CODA, SEPA and structured communications
• Mercurius — federal B2G
• FPS Finance — VAT
• Intervat — VAT tele-declaration portal
• Moniteur belge — search