Extended Covid-19 VAT measures

The Belgian Parliament adopted the law concerning temporary support measures due to the COVID-19 pandemic on 15 July 2021. The law extends currently applicable COVID-19 tax measures and is generally effective as from 1 July 2021. The extended VAT measures are as follows:

• Reduced VAT rate for mouth masks and hydroalcoholic gels: The reduced VAT rate of 6 percent remains applicable until 30 September 2021 to the supply, intra-Community acquisition and import of mouth masks and hydroalcoholic gels used in the fight against Covid-19. The customs classification of mouth masks will be updated without any effect on the scope of this measure. This extension was already announced by the Belgian Tax Authorities earlier in July (see NL / FR / DE )
• Reduced interest on late payments: The interest rates on late payments were temporarily reduced in the months April, May and June 2021. This measure will apply also in the months July, August and September (i.e. Q3) and is as follows:
  • a. The interest rate for negligent late payment of VAT and excise duties by taxpayers remains reduced to 4 percent per year in Q3 2021.
  • b. When the payable amount is recorded in an enforcement register or is based on a judicial decision, the applicable interest rate remains 8 percent per year in Q3 2021, calculated from the date of enforceability in the register or the decision, respectively.
  • c. The interest rate for late repayment of VAT by the Tax Authorities remains reduced to 2 percent per year in Q3 2021.

If you have any questions on the above or on any other developments concerning the VAT legislation, do not hesitate to contact us.