Belgium: VAT amendments enacted

The provisions of the legislation are generally in line with those in the proposed amendments.

The provisions are generally in line with those in the proposed amendments.

The Belgian Parliament in December 2021 passed legislation containing amendments to the value added tax (VAT) law. The enacted legislation was published in the official gazette on 31 December 2021.

The provisions of the legislation are generally in line with those in the proposed amendments. Read TaxNewsFlash and TaxNewsFlash

Accordingly, the legislation includes:

  • An exemption for non-profit organizations that are of a political, trade-union, religious, patriotic, philosophical, philanthropic or civic nature
  • A provision regarding the treatment of furnished accommodations
  • A deduction of VAT under “actual use method”
  • Elimination of presumptive VAT scheme
  • VAT refund arrangements
  • A reduced VAT rate for hair implants
  • Measures concerning work on immovable property
  • Place-of-supply rules for remote (distance) sales of imported goods

In contrast to the proposed amendments, the legislation does not provide for a reduced VAT rate for gas and electricity.

In addition, the legislation as enacted does not include an extension for application of the reduced VAT rate for the supply, intra-Community acquisition, and import of face masks and hydroalcoholic gels used to combat the coronavirus (COVID-19) pandemic (this extension was already provided by Royal Decree of 21 December 2021, as approved by the Belgian Council of Ministers).

Read a January 2022 report prepared by the KPMG member firm in Belgium


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