VAT schemes in Belgium: normal, small business exemption and special schemes

What are the different VAT schemes in Belgium?

Value added tax (VAT) is an indirect tax on consumption. A taxable business generally collects VAT on its sales and may, under certain conditions, deduct the VAT it pays on business purchases.

However, not all businesses follow the same rules.

The Belgian VAT Code provides for a normal scheme and several special schemes, adapted in particular to the size of the business or the nature of its activity.

Comparison of VAT schemes in Belgium in 2026

The normal scheme remains the general framework. Special schemes provide specific rules for taxation, invoicing or reporting.

A business may also be affected by exemptions, reverse charge rules or European arrangements. These mechanisms are not necessarily separate VAT schemes.

VAT scheme, VAT rate and exemption: what is the difference?

These three concepts are often confused.

The VAT scheme determines the tax rules that apply to a business or to certain transactions. The VAT rate is the percentage applied to a taxable amount. An exemption means that a transaction meets the statutory conditions for not charging the tax.

For example, a business under the normal scheme may charge 21% VAT on some services and 6% on others. A small business using the exemption does not charge VAT on transactions covered by that scheme, even if those transactions would normally be taxed at 21%.

You therefore need to identify the applicable scheme before calculating VAT on an invoice.

Sources: SPF Finances: Régimes TVA

The normal VAT scheme: how it works, rates and deductions

The normal VAT scheme is the standard system applied to most Belgian businesses. It covers both individuals working as sole traders and companies, including an SRL, the Belgian private limited company.

Under this scheme, the business charges customers VAT when its transactions are subject to the tax. It can also recover the VAT paid to suppliers, within the limits set by tax legislation.

How does the normal VAT scheme work?

The principle is based on the difference between VAT collected on sales and deductible VAT on purchases.

Take the example of an IT services business in Brussels.

The business has collected €2,100 in VAT from its customers and has €840 of deductible VAT on its purchases.

It therefore has to pay €1,260 to the tax authorities.

This mechanism explains why value added tax is generally not a final cost for a business with a full right to deduct VAT.

Non-deductible VAT, for example on certain car costs, hospitality expenses or private expenditure, remains a cost to the business.

Monthly or quarterly returns: what are the obligations?

A business under the normal scheme generally has to file a periodic VAT return through Intervat.

There are two filing frequencies:

• Monthly returns: the default arrangement, generally with filing due by the 20th of the following month.
• Quarterly returns: an option available subject to conditions for businesses whose annual turnover does not exceed €2,500,000 excluding VAT. A limit of €250,000 excluding VAT applies to the combined supplies of energy products, mobile phones, computers and their peripherals, accessories and components, and land motor vehicles subject to registration. Quarterly filing is unavailable if the business must submit monthly EC sales lists.

For quarterly filers, the general filing deadline is the 25th of the month following the quarter concerned.

Check these deadlines against the official calendar, particularly when specific extensions are granted.

A VAT return determines the tax due, the deductible amounts and the balance payable or potentially recoverable.

What are the advantages and drawbacks of the normal scheme?

The main advantage of the normal scheme is the ability to deduct VAT on eligible investments and business expenses.

It is particularly useful for a company that makes substantial purchases, invests in equipment or works mainly with other businesses.

In return, there are more tax obligations: compliant invoicing, bookkeeping, periodic returns, an annual list of taxable customers and payment monitoring.

This scheme therefore involves more administration, which may require help from a bookkeeper or accountant.

Sources: SPF Finances: Déclaration périodique · Belgium.be: Déduction de la TVA en amont

The VAT exemption scheme for small businesses

The VAT exemption scheme is available to self-employed people, freelancers and small Belgian businesses that meet the statutory conditions.

It simplifies VAT administration: the business does not charge VAT on transactions covered by the exemption and does not file ordinary periodic returns.

In return, it cannot deduct the VAT paid on its business purchases.

Who can use the small business VAT exemption in Belgium?

In 2026, a business can generally opt for the exemption scheme if its eligible annual turnover does not exceed €25,000 excluding VAT. The law of 23 September 2026, published on 7 October, raises this threshold to €26,000 in 2027, then by €1,000 a year until it reaches €30,000 in 2031. This enacted increase does not change the threshold applicable in 2026.

Those eligible may include:

• A person whose self-employment is their main or secondary occupation.
• A business owner operating as a sole trader.
• A small company, such as an SRL.
• An eligible consultant or service provider.
• A newly established business, subject to the specific rules for calculating the threshold.

Legal form alone therefore does not prevent a business from using the exemption.

However, certain activities fall outside the scheme. These include certain building works, businesses required to use a registered cash register system and certain transactions involving used materials.

VAT groups cannot use this scheme either.

The exact nature of the transactions must be examined before treating a business as eligible for the exemption.

How is the €25,000 threshold calculated?

The threshold is assessed over a calendar year using the turnover calculation rules in the VAT Code.

It does not necessarily correspond to all of a business’s accounting receipts. Some transactions are included in the calculation, while others must be excluded.

Another important rule applies to businesses that start trading during the year: the threshold is calculated in proportion to the number of days remaining in the calendar year.

Consider an official example.

A self-employed person starts trading on 1 July 2026 and expects turnover of €15,000 by 31 December.

Their exemption threshold for this period is approximately €12,603, rather than €25,000.

Based on that estimate, they cannot use the exemption in 2026.

This rule deserves particular attention if you decide to start a business partway through the year.

What happens if you exceed €25,000?

The legislation allows the threshold to be exceeded by no more than 10% during the calendar year. The table below assumes a business trading throughout 2026; if trading starts during the year, the tolerance is calculated on the proportionately reduced threshold.

For example, if your turnover reaches €26,750 in 2026, you can retain the exemption until the end of the year, but you will have to switch to the normal scheme in 2027. The increase to €26,000 in 2027 does not cancel the breach of the threshold applicable in 2026: Article 56decies of the VAT Code provides for exclusion during the following calendar year.

If a transaction takes you above the increased threshold of €27,500, the normal scheme applies from that transaction.

FPS Finance also provides for a waiting period before you can return to the exemption after changing schemes.

What are the advantages of the small business VAT exemption?

The exemption offers several advantages for a small business.

The first is simpler administration: you do not have to file ordinary periodic VAT returns.

You also have no VAT to charge on transactions covered by the scheme and no corresponding VAT to pay to the Treasury.

For a business working with private individuals, this can also be a commercial advantage. At the same selling price, charging no VAT can leave a larger margin.

This scheme is often attractive when the activity requires few purchases, little equipment and limited business expenses.

What are the drawbacks of the small business VAT exemption?

The main drawback is that you cannot recover VAT on business purchases.

A self-employed person who buys a computer for €1,210 including VAT at 21% therefore bears the full price.

Under the normal scheme, they could in principle recover the €210 of VAT if the purchase is used entirely for an activity that gives a right to deduct VAT.

The exemption therefore becomes less attractive when investments or purchases account for a substantial share of turnover.

The annual threshold can also limit business development. If your business is growing strongly, you need to plan the switch to the normal scheme so that you can adjust prices and invoices.

Finally, the exemption does not remove bookkeeping obligations or tax on business income. Nor does it release a self-employed person from their other social security and tax obligations.

How do you apply for the small business VAT exemption?

To use the scheme, you must complete the required formalities with the tax authorities.

When setting up a business, an enterprise counter can help you register with the Crossroads Bank for Enterprises and complete the formalities relating to your VAT identification number.

Your choice of scheme is communicated through the e604 application, in particular using form e604A when starting an activity or e604B when making a change.

For an existing business wishing to apply the exemption from 1 January 2027, the FPS Finance timetable requires an application before 15 December 2026.

It is advisable to discuss this with your accountant before applying, particularly if you already hold investments on which VAT has been deducted.

Sources: SPF Finances: Régime de la franchise de taxe · Moniteur belge: loi du 23 septembre 2026, relèvement des plafonds de franchise (articles 26 et 27) · Moniteur belge via EUR-Lex: loi du 21 mars 2024, article 22 introduisant l’article 56decies du Code de la TVA · SPF Finances: application e604, identification et changements TVA

The flat-rate VAT scheme: a system being abolished in 2028

The flat-rate VAT scheme was long used by certain small traders who sold their products or services mainly to private individuals.

Unlike the normal scheme, it uses standardised methods specific to certain sectors to determine taxable receipts.

The flat-rate scheme has been closed to new participants since 1 January 2022 and will be permanently abolished on 1 January 2028.

Which businesses can still use the flat-rate scheme?

Only certain taxable persons who were already using the scheme and continue to meet its conditions can retain it during the transitional period.

Historically, the scheme covered bakers, butchers, hairdressers, chip shop operators, café owners and certain retailers, among others.

The main conditions include operating as a sole trader, carrying on an eligible activity and having turnover in the previous year below €750,000 excluding VAT. Transactions for which an invoice or document must be issued cannot normally exceed 25% of the value of transactions; this maximum can reach 40% in certain cases.

Using a registered cash register system can also rule out the flat-rate scheme.

How does the flat-rate calculation work?

Instead of systematically determining taxable receipts from each individual sale, the scheme uses rules specific to the activity, including coefficients, standardised amounts or data derived from purchases.

VAT deduction rules continue to apply under the conditions of the scheme.

This system therefore does not mean that the business always pays a fixed amount of VAT each month.

The taxable person remains subject to bookkeeping and reporting obligations.

What should businesses do before 2028?

Businesses still using the flat-rate scheme need to plan their transition.

As the scheme ends on 31 December 2027, they must prepare to move to another applicable scheme, generally the normal scheme or, if all the conditions are met, the small business exemption.

Preparations should cover cash register software, invoices, receipts, selling prices and reporting obligations.

Sources: SPF Finances: régime forfaitaire, conditions et suppression en 2028

Special VAT schemes in Belgium

Alongside the normal scheme and the small business exemption, certain business activities benefit from special tax rules.

These arrangements do not depend solely on annual turnover. They often reflect the particular characteristics of a sector or the transactions carried out.

The special agricultural scheme

The agricultural scheme covers certain farmers whose activities include crop production, livestock farming, horticulture, beekeeping or forestry.

It provides significant relief compared with the ordinary scheme: the farmer is generally not required to file ordinary periodic returns or pay VAT to the Treasury for transactions covered by the scheme.

In return, the farmer does not directly deduct VAT on business purchases.

A flat-rate compensation system applies in dealings with certain taxable customers. The compensation rates include 2% for supplies of timber and 6% for the other goods and services concerned.

A farmer can also choose the normal scheme or, if the conditions are met, the small business exemption.

Certain additional activities, such as tourism services or sales outside the agricultural scheme, may be subject to different rules. Combining it with the normal scheme is limited to permitted supplementary transactions related to the farming activity, whose turnover does not exceed 30% of the total in the current and previous year. Combining the agricultural and normal schemes does not also allow the exemption to be applied to other transactions.

The profit margin scheme

The margin scheme covers, in particular, certain businesses specialising in the resale of second-hand goods, vehicles, works of art, collectors’ items or antiques.

Where the statutory conditions are met, it allows VAT to be calculated on the profit margin rather than on the full selling price.

Calculation example:

A dealer buys a second-hand item from a private individual for €400 and resells it for €600.

The gross margin is €200.

If the transaction qualifies for the margin scheme and is subject to the 21% rate, the VAT included in that margin is calculated as follows:

VAT on the margin = 200 × 21 / 121 = €34.71

The tax is therefore not calculated on the €600 selling price.

The VAT relating to this transaction must not be shown separately on the invoice. The document must carry the wording “Supply subject to the special profit margin scheme. VAT not deductible”. The buyer cannot deduct the VAT included in the price of goods sold in this way.

Take care: this scheme does not apply to every second-hand sale. The origin of the goods and the supplier’s status are particularly important. Since 31 December 2025, supplies of works of art, collectors’ items or antiques under the margin scheme have been excluded from the reduced rate. Opting for the margin scheme on imports or certain purchases of these goods requires that no reduced rate was applied at purchase or import.

Sources: SPF Finances: régime agricole, compensations et cumul de régimes · SPF Finances: régime de la marge pour les biens d’occasion et mentions de facture · Moniteur belge: Objets d’art, loi du 19 décembre 2025, articles 5 à 7 (31 décembre 2025)

Which VAT scheme should you choose for your business?

The best VAT scheme depends on your business circumstances.

Someone who is self-employed as a secondary occupation and invoices private individuals for a few services has different needs from an IT company that invests in equipment and works with business customers.

Here are the most common situations.

You work mainly with private individuals

If you provide services to private individuals and your turnover remains below the statutory threshold, the exemption may be attractive.

Consumers generally cannot recover VAT. The price including VAT is therefore their actual cost.

Not having to charge VAT may allow you to offer a more attractive price or retain a higher margin.

However, this option remains limited to activities and transactions permitted under the exemption scheme.

You mainly invoice other businesses

For a B2B activity, the normal scheme may be more attractive, even when turnover is below €25,000.

Your business customers with a full right to deduct VAT can generally recover the VAT you charge them.

At the same time, your business can recover VAT on its own eligible business expenses.

The exemption is therefore less likely to offer a decisive price advantage with these customers.

You are planning substantial investments

If your start-up plan includes buying IT equipment, machinery or other equipment, or fitting out business premises, the normal scheme may offer a significant advantage.

Subject to the statutory conditions, it allows VAT to be recovered on expenses that qualify for deduction.

Under the exemption, the VAT charged by your suppliers increases the actual cost of your investments.

A business car, for example, is subject to specific deduction rules: recoverable VAT depends in particular on its use and may be capped at 50% for a passenger car.

You therefore need to compare schemes using your actual expenses, without assuming that all VAT paid will be recoverable.

Example: exemption or normal scheme for the same service?

Take a service provider selling a service to a private individual for a final price of €1,210. To provide it, they incur €363 of business purchases including VAT, all subject to 21% and fully deductible under the normal scheme.

In this particular example, the exemption leaves a margin that is €147 higher.

But the result changes if the provider invoices businesses, has to adjust prices to competitors or makes larger investments.

The exemption is therefore not automatically the best scheme for every small business.

Key criteria to consider before choosing

To determine which VAT scheme is most worthwhile, consider your forecast turnover, the proportion of business and private customers, expenses subject to VAT, investments, growth prospects and the cost of administration together.

You must also take account of any exclusions linked to your business sector.

An accountant can model several scenarios to compare your business’s profitability and cash flow under different schemes.

Sources: Belgium.be: Déduction de la TVA en amont

Which VAT rates apply in Belgium?

A business’s tax scheme does not automatically determine the rate applicable to each sale.

In Belgium, the standard VAT rate is 21%, but reduced rates exist for certain categories of goods and services.

The standard rate of 21%, intermediate rate of 12% and reduced rate of 6%

The three general rates are therefore 21%, 12% and 6%. The zero rate applies only in specific situations, including certain publications that meet the statutory conditions.

The term “super-reduced rate”, sometimes encountered in European comparisons, does not refer to a fourth general VAT rate in Belgium.

The application of the tax depends on the nature of the transaction, the date, the statutory conditions and, sometimes, the country in which the service or sale is taxable.

How do you calculate VAT on a selling price?

To calculate VAT from a price excluding tax, multiply the taxable amount by the applicable rate.

VAT amount = Price excluding VAT × Rate / 100

For example, for a service costing €500 excluding VAT at the 21% rate:

• Amount excluding VAT: €500.
• VAT due on the sale: €105.
• Price including VAT: €605.

Conversely, to find the amount excluding VAT from a price including VAT:

Price excluding VAT = Price including VAT / (1 + Rate / 100)

You can make these calculations directly with our Belgian VAT calculator, which converts a price excluding VAT into a price including VAT or finds the tax included in an amount.

How do you calculate the VAT due to the tax authorities?

Under the normal scheme, you need to distinguish between two amounts.

VAT collected is the tax charged to customers on taxable sales.

Deductible VAT is the tax recoverable on eligible business purchases and expenses.

The calculation of VAT payable is generally as follows:

Net VAT = VAT collected − Deductible VAT

If the result is positive, the business generally has to pay the difference to the Treasury.

If the result is negative, it has a VAT credit that may, under certain conditions, be carried forward or refunded.

The right to deduct VAT must be checked for each expense. The presence of a VAT amount on a supplier’s invoice does not, by itself, guarantee that it is fully deductible.

Sources: SPF Finances: Taux de TVA · Belgium.be: Taux de base de la TVA · SPF Finances: Déductions et remboursement de TVA

What VAT obligations do Belgian businesses have?

Being a taxable person for VAT purposes involves various tax and administrative obligations.

These obligations vary according to the chosen scheme, but they do not automatically disappear when a business benefits from a small business exemption or another exemption.

Registration and VAT number

Every business carrying on an economic activity within the scope of VAT must assess its registration obligations.

A self-employed person or company that is taxable for VAT purposes generally needs a Belgian VAT number, even when using the exemption scheme.

Registration can be completed as part of setting up the business, including through an enterprise counter.

The obligations depend on the person’s status and activity. Certain persons carrying out only transactions exempt under Article 44 of the VAT Code do not have to register for VAT.

An employee is not subject to VAT on the salary paid by an employer. A separate self-employed activity may, however, make them a taxable person.

Invoicing and bookkeeping

A business must keep accounts appropriate to its circumstances and retain documents supporting its transactions.

Invoices must contain the information required by law, including the identity of the parties, the necessary identification numbers, the nature of the service, the prices and the VAT treatment.

Under the exemption scheme, no VAT is charged on the transactions it covers.

The invoice must nevertheless correctly identify the scheme, for example through wording referring to the special small business VAT exemption scheme.

An invoice without VAT should not automatically be presented as a sale at the 0% rate. The absence of tax must be explained by the tax treatment that actually applies.

Annual list of taxable customers

The annual VAT customer list includes the relevant transactions with customers holding a Belgian VAT number where the annual amount per customer exceeds €250 excluding VAT. Customers carrying out only transactions exempt under Article 44 are not included.

Businesses under the normal scheme must meet the obligations relating to this list unless a relevant exception applies.

Since 2026, businesses using the exemption must also report their total turnover in Belgium for the previous calendar year annually, even when it is zero. This amount is determined using the transactions covered by Article 56nonies of the VAT Code; it does not automatically correspond to all accounting receipts.

The information is submitted through Intervat, normally no later than 31 March. For 2026, a specific extension to 30 April was granted for nil customer lists from businesses using the exemption scheme.

This rule matters: a business using the exemption is relieved of ordinary periodic returns, but not of every VAT reporting obligation.

Mandatory electronic invoicing since January 2026

Since 1 January 2026, structured electronic invoicing has been mandatory for Belgian B2B transactions within the scope of this measure.

In principle, this obligation also covers small businesses using the VAT exemption.

The invoices concerned must be exchanged in a structured format, notably through the Peppol network. A simple PDF file sent by email is no longer sufficient.

A business working exclusively with private individuals is not required to send structured electronic invoices to those customers. It must nevertheless be able to receive electronic invoices from its Belgian suppliers when the transactions fall within the scope of the obligation.

There are certain exceptions, including transactions exempt under Article 44 of the VAT Code. Taxable persons under the flat-rate scheme are exempt from issuing structured electronic invoices during the transitional period, but must be able to receive them. The agricultural scheme also requires, at a minimum, the ability to receive the structured B2B invoices concerned.

Sources: SPF Finances: liste annuelle des clients assujettis · e-facture: Champ d’application de la facturation électronique obligatoire · SPF Finances: application e604, identification et changements TVA

Small business exemption, other exemptions and reverse charge: key differences

A transaction on which no VAT is charged does not necessarily fall under the small business exemption scheme.

You need to distinguish the different situations to avoid bookkeeping or reporting errors.

The VAT exemption under Article 44

Certain activities benefit from an exemption linked to the nature of the transactions, rather than annual turnover.

Subject to conditions, these may include medical services, certain educational activities, insurance transactions or financial services.

This exemption does not work in the same way as the small business exemption.

It can also affect the right to deduct VAT.

A business carrying out both taxable and exempt transactions may become a partly exempt taxable person. It must then determine how much VAT is actually deductible on its shared expenses, using the permitted methods.

The VAT reverse charge

The reverse charge is a mechanism that transfers the obligation to report or pay VAT from the supplier to the customer when the statutory conditions are met.

It can apply, in particular, to certain intra-Community transactions or certain building works between taxable persons.

The supplier then prepares the invoice in accordance with the reverse charge rules, without adding the VAT it would normally have collected.

This does not mean that the transaction is automatically exempt or subject to a 0% rate.

The customer must determine the tax due and, if entitled to deduct VAT, may deduct it under the applicable conditions.

Can a business using the exemption still have VAT to pay?

Yes. The exemption does not remove every obligation to pay VAT.

Certain intra-Community acquisitions or services received from foreign suppliers may create an obligation to file a special return and pay VAT in Belgium.

You therefore need to check the nature of the transaction, the countries concerned and the tax status of the parties.

For more detail, see our guide to intra-Community VAT.

Sources: SPF Finances: Régimes TVA · SPF Finances: Relevé intracommunautaire · SPF Finances: déclaration spéciale de TVA

Intra-Community VAT, e-commerce and the SME scheme

International activity can change a Belgian business’s VAT obligations, even when it uses the normal scheme or the small business exemption.

Sales of goods or services to foreign customers must be examined separately.

The European SME exemption since 1 January 2025

Since 1 January 2025, Belgian businesses have been able, under certain conditions, to benefit from a VAT exemption in one or more other Member States of the European Union.

This arrangement is known as the SME scheme.

To use it, a business established in Belgium must, among other conditions, have annual turnover in the European Union of no more than €100,000 and comply with the national threshold in each country where it wishes to claim the exemption.

A business can therefore use the normal scheme in Belgium while benefiting from the SME scheme in another Member State, provided it meets the conditions.

The European threshold of €100,000 does not replace the Belgian threshold of €25,000 applicable in 2026. These are different thresholds used in different contexts.

Access to the scheme requires prior notification and creates specific reporting obligations.

The OSS One Stop Shop for e-commerce

A business selling goods or certain services to consumers in other European countries may also be affected by the OSS (One Stop Shop).

This arrangement simplifies the reporting and payment of VAT due in several Member States.

It covers, in particular, certain intra-Community distance sales and certain cross-border services.

The OSS scheme is not a general exemption. Its main purpose is to centralise VAT obligations.

It replaced and expanded the former MOSS (Mini One Stop Shop) system in July 2021.

The choice between applicable arrangements depends in particular on the products sold, the customer’s country, the amounts involved and the seller’s tax status.

Sources: SPF Finances: régime SME de franchise pour les petites entreprises dans l’Union européenne · SPF Finances: Guichet unique OSS

How do you choose or change VAT schemes in Belgium?

You need to choose your scheme when starting the activity and reassess it as your business circumstances change.

Here is a five-step approach.

1. Identify your activity and status. Determine whether you operate as a sole trader, through a company or in a sector subject to specific provisions of the VAT Code.
2. Estimate your annual turnover. Check your eligibility for the exemption, remembering the proportionate calculation if you start trading during the year.
3. Compare your customers and purchases. Assess the proportion of sales to private individuals, deductible expenses, planned investments and the effect on your prices.
4. Complete the formalities. Notify the tax authorities of the applicable scheme through the registration or amendment procedures, in particular e604A or e604B.
5. Adapt your administration and monitor your activity. Set up invoicing, reporting obligations, turnover monitoring and any treatment of intra-Community transactions.

What should you check before changing schemes?

A change of scheme can alter the treatment of your stock, purchases and previous investments.

For example, moving from the normal scheme to the exemption may require adjustments to certain VAT deductions already claimed.

Similarly, a business leaving the exemption must adapt its invoices and prices as soon as the normal scheme becomes applicable.

A poorly planned transition can reduce the margin, lead to adjustments or cause invoicing errors.

It is therefore advisable to prepare a transition plan with your accountant, particularly if the business holds substantial fixed assets or carries on several activities.

Sources: SPF Finances: Régime de la franchise de taxe · SPF Finances: application e604, identification et changements TVA

Which VAT scheme should you use in Belgium in 2026?

The normal scheme remains the standard system for Belgian businesses. It allows VAT to be recovered on eligible business expenses, but requires periodic returns and more bookkeeping.

The small business VAT exemption is an attractive alternative for certain businesses with annual turnover of no more than €25,000, provided they meet the statutory requirements.

Special schemes, particularly the agricultural and margin schemes, address specific needs. The flat-rate scheme will be permanently abolished in 2028.

Before choosing, always compare three factors: the VAT recoverable on your purchases, the effect on your selling prices and the administrative obligations.

To check the VAT amount on an invoice, convert a price excluding VAT into a price including VAT or work backwards from a total, use the free Belgian VAT calculator.

For more detail on each topic, also see our guides to the small business VAT exemption in Belgium, VAT returns and the taxable amount.

Sources: SPF Finances: Régimes TVA