Parliament adopts Bill to prolong reduced VAT until 30 Jun 2025
Belgium’s Ministry of Finance has proposed extending the reduced VAT rate on the demolition and reconstruction of dwellings until 30 June 2025. The current reduction is due to end on 31 December 2024.
The Bill will now be approved and gazetted following its adoption by Parliament on 28 November 2024.
See more in our Belgium VAT country guide.
Belgian VAT rates
1. Standard Rate (21%)
- Applies to most goods and services: This includes clothing, electronics, cars, furniture, and professional services.
- It is the default rate unless specified otherwise.
2. Reduced Rates
Belgium has a few reduced rates to support essential goods and services, cultural activities, and environmentally friendly practices:
12% Reduced Rate
-
- Social housing construction
- Certain agricultural products
- Some food services (e.g., restaurant meals without alcohol)
6% Reduced Rate
- Primarily for essential goods and services:
- Basic foodstuffs
- Books, newspapers, and magazines (non-digital formats)
- Public transport
- Medical and orthopedic equipment
- Renovation and repair of private dwellings older than 10 years
- Certain cultural services like museum entry fees
3. Zero Rate (0%)
- Intra-community and export goods: Goods exported to non-EU countries or sold within the EU to businesses registered for VAT in another EU country.
4. Exemptions (No VAT Applied)
Certain goods and services are exempt from VAT. Examples include:
- Financial and insurance services
- Educational services
- Some healthcare and medical services
- Rental of immovable property (with exceptions for short-term stays like hotels)
