Rates, small business scheme, returns, e-invoicing: the essentials for self-employed people and companies. Updated on 28 October 2026.
VAT is a consumption tax: your business charges it to its customers, recovers the VAT paid on its business purchases and pays the difference to the State. Here are the main rules to know today.
Belgium applies four rates:
What changed on 1 March 2026: accommodation (hotels, B&Bs, certain short-term rentals with services) and camping pitches went from 6% to 12%. Plant protection products and pesticides went from 12% to 21%.
Example: a €1,000 service excluding VAT at 21% gives €210 of VAT, i.e. €1,210 including VAT.
If your annual turnover does not exceed €25,000 excluding VAT, you can opt for the small business scheme: you do not charge VAT and do not file periodic returns, but you cannot recover VAT on your purchases either.
A bill adopted by the Chamber in September 2026 provides for raising this threshold by €1,000 a year from 1 January 2027, reaching €30,000 in 2031. We will update this article as soon as it is officially published.
Since 2025, an error in a return already filed is corrected in the next return. Late filing can cost €100 per month of delay, up to a maximum of €500.
Since 1 October 2025, the VAT current account has been replaced by a VAT provision account, viewable in MyMinfin. A VAT credit refund is requested directly by ticking the box provided in the return.
Since 1 January 2026, invoices between VAT-registered businesses established in Belgium must be structured electronic invoices, sent in principle via the Peppol network. A PDF sent by email is therefore no longer enough between businesses.
Non-compliance is penalised with fines of €1,500, then €3,000 and €5,000 for repeat offences. Invoices to consumers are not affected. Some businesses, such as those under the small business scheme, have specific rules: check your situation with us.
Our solution: we work with Odoo, which lets you send and receive Peppol invoices free of charge. Learn more.
An invoice must include, among other things: the date and a unique number; the name, address and VAT number (BE + company number) of the supplier and of the VAT-registered customer; a description of the goods or services; the amount excluding VAT; the VAT rate and amount; and the total including VAT. Supplies to private individuals for their own use generally do not require an invoice, except in certain cases (for example, construction work).
You recover the VAT paid on purchases used for your taxable activity. For an asset used for both private and business purposes, only the business share is deductible. Some expenses have specific limits, such as cars (generally 50% maximum) or restaurant and reception costs (not deductible).
Need help with your VAT? Returns, switching to Peppol, choosing a scheme: contact us for a free first meeting.
This article provides general information and does not replace advice tailored to your situation. Sources: FPS Finance and professional publications, situation as at 28 October 2026.
