Key takeaways
- Belgium VAT rates: The standard VAT rate is 21%, with reduced rates of 12% and 6%, plus a 0% rate for specific goods like newspapers and transport services.
- Registration threshold: Resident businesses must register once turnover exceeds €25,000, while non-EU companies must appoint a fiscal representative.
- Filing & penalties: VAT returns are filed monthly or quarterly, and late filings or payments can lead to fines up to €1,000 and 15% monthly penalties on unpaid VAT.
If you’re planning to extend your ecommerce business into Belgium, there’s a good chance you’ll be required to register for VAT. In this guide, we'll explain in a little bit more detail how VAT works in Belgium, making your entry into this market smoother and more informed.
What is the Belgian VAT rate?
In Belgium, VAT is known as BTW (Belasting over de Toegevoegde Waarde) in Dutch and TVA (Taxe sur la Valeur Ajoutée) in French. The Belgian VAT system includes several rates designed to encompass various goods and services:
Registering for VAT in Belgium
The VAT registration threshold in Belgium for resident businesses is €25,000 in annual turnover (nil for non-resident). This means that if your business’s taxable turnover is below this amount, you are not required to register for VAT, but you can choose to do so voluntarily.
The EU has now removed country-specific thresholds, which means that since July 1, 2021, Belgium, as with every other EU country, has a distance-selling threshold of €10,000. So, if your company’s annual turnover for cross-border sales with Belgium exceeds €10,000, you’ll need to register for VAT. If you store products in Belgium or are part of an FBA (Fulfilled-by-Amazon) program that includes Belgium, you’re also liable for VAT.
To obtain a Belgian VAT number, businesses established in the country should apply through the local tax office. Non-resident companies must apply through the Central VAT Office for Foreign Taxpayers (BCAE) in Brussels. The application must be submitted in the official languages of Belgium (Dutch, French, or German). The process usually takes about three to four weeks.
Fiscal representative in Belgium
Non-EU businesses that sell to customers in Belgium are required to have fiscal representation. The appointed fiscal representative will be responsible for the submission of VAT returns on behalf of the client and jointly liable for the Belgian VAT due.
Belgian VAT return filing and penalties
Businesses with an annual turnover exceeding €2,500,000 should file monthly VAT returns, whereas those with a turnover below this threshold may opt for quarterly or even yearly filings (although under certain circumstances a monthly filing is still required). VAT returns should be filed electronically through the INTERVAT portal.
The filing due date is the 20th day of the month following the end of the reporting period (whether quarterly or monthly). VAT payments must be made at the time of submission for monthly filings (with the exception of December when payments must be made before the 24th). Payments for quarterly filings must be prepaid every month.
Late filing can result in fines ranging from €100 to €1,000, depending on how late the return is. The penalty for late payment is 15% of the amount due (for every month it goes unpaid), with interest of 0.8% for each month the payment is overdue.
Belgian Intrastat declarations
Both resident and non-resident businesses in Belgium are required to submit Intrastat returns. All Intrastat returns need to be filed by the 20th of the month, with electronic filings preferred by the Belgian authorities. The annual threshold for filing an Intrastat return is €1,500,000 for arrivals and €1,000,000 for dispatches.
Reverse charge in Belgium
The reverse charge mechanism in Belgium is relevant for certain domestic transactions and EU cross-border supplies and involves the recipient rather than the supplier calculating and reporting VAT. This mechanism helps streamline transactions and reduces the need for foreign suppliers to register for VAT in the country.
Frequently asked questions
What is the VAT rate in Belgium?
Belgium’s standard VAT rate is 21%, with reduced rates of 12% (for items like energy products and social housing) and 6% (for food, books, medical supplies, accommodation, and cultural events). A 0% rate applies to newspapers, passenger transport, and certain recycled goods.
When do I need to register for VAT in Belgium?
Resident businesses must register once turnover exceeds €25,000. Non-resident businesses must register immediately upon starting taxable activities. The EU-wide distance selling threshold of €10,000 also applies, as does registration if you store goods or use Amazon FBA in Belgium.
How do I register for VAT in Belgium?
Resident businesses apply through their local tax office, while non-resident companies must register with the Central VAT Office for Foreign Taxpayers (BCAE) in Brussels. The process takes about 3–4 weeks and must be completed in Dutch, French, or German.
Do foreign businesses need a fiscal representative in Belgium?
Yes. Non-EU companies must appoint a fiscal representative who is jointly responsible for filing VAT returns and paying VAT owed in Belgium.
How often must VAT returns be filed in Belgium?
- Monthly – for businesses with annual turnover above €2.5 million
- Quarterly or yearly – for smaller businesses, depending on circumstances
Returns must be submitted electronically via INTERVAT by the 20th of the following month. VAT payments are due at the same time.
Are Intrastat declarations required in Belgium?
Yes. Businesses trading within the EU must file Intrastat returns by the 20th of the following month if annual trade exceeds €1.5 million (arrivals) or €1 million (dispatches).
