Belgium VAT (BTW/TVA) Guide: Rates, Rules & Filing

Belgium VAT (BTW/TVA)

Belgium, located at the crossroads of Europe, is known for its strategic economic importance within the European Union. As part of its fiscal framework, Belgium enforces a Value Added Tax (VAT) system, locally referred to as BTW (in Dutch) or TVA (in French). This consumption-based tax is applied to most goods and services supplied in the country and plays a vital role in public revenue generation.

This guide is designed for entrepreneurs, importers, exporters, and digital businesses seeking to understand Belgium’s VAT structure - including rates, registration rules, VAT number format, invoicing obligations, filing process, exemptions, and international transactions.

💡 What is VAT in Belgium?

Value Added Tax in Belgium is a multi-stage tax collected at each stage of production or distribution, with the final burden resting on the consumer. Businesses charge VAT on sales and deduct VAT paid on purchases (input tax), remitting the difference to the government.

The tax is regulated by the Federal Public Service (FPS) Finance and follows EU VAT directives, ensuring consistency with other EU member states.

📈 Belgium VAT Rates (2025)

Belgium applies four different VAT rates, tailored to various product and service categories:

Standard Rate – 21%

This is the most commonly applied rate, covering general goods and services such as electronics, clothing, and professional services.

Reduced Rate – 12%

Applies to socially important items, like certain construction services and restaurant food (excluding alcoholic drinks).

Reduced Rate – 6%

Targets essential goods and services, such as basic food items, medicines, books, newspapers, and public transport.

Zero Rate – 0%

Applies mainly to exports and certain EU-intra community supplies, where VAT is not charged but input VAT may be reclaimed.

📝 Who Needs to Register for VAT in Belgium?

Belgian Businesses:

Companies established in Belgium must register for VAT before making taxable sales or providing services.

Foreign Businesses:

Non-Belgian companies are required to register if they:

• Sell goods within Belgium.
• Provide services to Belgian customers.
• Import goods into Belgium.
• Participate in distance selling or cross-border e-commerce.

VAT Registration Threshold:

• Belgian businesses: No minimum threshold for VAT registration.
• Foreign companies: Must register before carrying out any taxable activity.
• Small enterprises (under €25,000 turnover annually) may opt for a special exemption scheme.

🔢 Belgium VAT Number Format

A Belgian VAT number includes the country prefix “BE” followed by a 10-digit number.

• Example: BE0123456789

This number must appear on all VAT invoices, filings, and correspondence with tax authorities.

🧾 Invoicing Requirements

Belgian VAT law requires businesses to issue VAT-compliant invoices for taxable transactions. Each invoice must include the following:

• Invoice issue date and unique serial number
• Seller and buyer names and addresses
• Seller’s VAT number
• Description of goods/services
• Unit prices, quantities, and applicable VAT rate
• VAT amount and total invoice value
• Buyer’s VAT number (if B2B)

Electronic invoices are allowed and often encouraged, particularly for business-to-business transactions and public sector dealings.

🧮 How VAT is Calculated in Belgium

Example:

If a Belgian company sells a laptop for €800 and applies the standard 21% VAT:

• VAT = €800 × 21% = €168
• Total invoice = €800 + €168 = €968

The business collects €968 from the customer, keeps €800, and remits €168 to the tax office.

🗓️ Filing and Paying VAT in Belgium

Frequency:

• Monthly: Required for large businesses.
• Quarterly: Available to SMEs with annual turnover below certain limits.

Filing Deadline:

• VAT returns must be filed by the 20th day of the month following the reporting period.
• Payments must be made by the same deadline.

Filing Platform:

Returns are filed online using the INTERVAT portal, which requires authentication via Belgian digital ID or authorized tax representative.

🌍 Cross-Border VAT Rules

Intra-EU B2B:

Sales between VAT-registered businesses in different EU countries are generally zero-rated.

The reverse charge mechanism applies, meaning the buyer accounts for VAT in their own country.

Intra-EU B2C:

Subject to destination-based VAT under the One Stop Shop (OSS) scheme for digital and distance sales.

Exports (Non-EU):

Zero-rated, provided the exporter retains valid shipping and customs documents.

Imports:

Subject to import VAT, which is recoverable for VAT-registered importers.

❌ VAT Exemptions

Some sectors and activities are VAT-exempt, meaning VAT is not charged and input tax cannot be claimed.

• Common exemptions include:
• Medical and healthcare services
• Educational institutions
• Insurance and banking
• Cultural and non-profit events
• Certain real estate transactions

🌐 VAT Refunds for Foreign Businesses

Foreign businesses that incur VAT in Belgium without being registered (e.g., during events or travel) can request a VAT refund:

• EU companies: Use their home country’s tax portal (EU 8th Directive).
• Non-EU companies: Must apply directly via the Belgian authorities (13th Directive) and provide original invoices.

Applications must be submitted by September 30 of the following year.

✅ Compliance Tips

• Always validate VAT numbers of EU partners using VIES.
• Maintain complete VAT records for at least 7 years.
• File returns and pay VAT on time to avoid penalties and interest.
• Use OSS/IOSS for simplified EU-wide B2C compliance.
• Consider appointing a local tax representative if you're a non-EU business.

📌 Final Thoughts

Belgium’s VAT system is comprehensive and aligned with EU norms, making it relatively streamlined for cross-border trade. However, VAT compliance can still be complex for businesses unfamiliar with the rules, particularly around invoicing, exemptions, and international transactions.

Whether you're selling digital services, physical goods, or engaging in intra-EU trade, staying VAT-compliant is essential. Use our free Belgium VAT Calculator to simplify your tax process today.