Prolongation of VAT temporary measures

The Belgian Council of Ministers decided last Friday, 24 June 2022, to extend the application of the reduced VAT rate in the context of the following temporary measures:

• Mouth masks and hydroalcoholic gels – 6% until end of 2022: The Belgian Council of Ministers approved a draft Royal Decree which extends the application of the 6% VAT rate for the supply, intra-Community acquisition and import of mouth masks and hydroalcoholic gels used in the fight against Covid-19. This temporary measure is currently applicable until 30 June 2022, but its application will be extended with six months, i.e., from 1 July until 31 December 2022.
• Electricity, gas and heat – winter months of 2022 also covered: The Belgian Council of Ministers approved another draft Royal Decree concerning the supply of electricity, gas and heat through heat networks and heat pumps. More specifically, this draft Royal Decree will:

1. extend the application of the 6% VAT rate for the supply of electricity under residential contracts until 31 December 2022. This temporary measure is currently applicable until 30 September 2022;
2. extend the application of the 6% VAT rate for the supply of natural gas and heat through heating networks for the period from 1 August 2022 until 31 December 2022. Hereby, distinction is no longer made between supplies on the basis of the underlying contracts.
3. specify the scope of application of the reduced VAT rate for certain transactions concerning heat pumps, by excluding the application of the reduced VAT rate for hybrid installations which partly make use of an energy source other than electricity. 

For background information about these temporary measures, see our previous news item here. If you have any questions on the above, do not hesitate to contact us.