Belgium VAT (BTW/TVA/MWSt) Calculator
Value Added Tax (VAT) is a consumption tax charged on most goods and services sold in Belgium. Known as Belasting over de Toegevoegde Waarde (BTW) in Dutch and Taxe sur la Valeur Ajoutée (TVA) in French, VAT is an important source of revenue for the Belgian government. Businesses act as collecting agents by adding VAT to the sales price and remitting it to tax authorities. This article provides an overview of Belgian VAT rates, registration requirements, calculations, reporting, compliance tips and includes a handy VAT calculator.
Standard VAT Rate
The standard VAT rate in Belgium is 21%. This rate applies to most goods and services such as clothes, restaurant meals, hotel stays, electronics, gifts, car repairs and so on. Some exceptions exist which are taxed at reduced rates discussed next.
Reduced VAT Rates
12% VAT rate
A reduced 12% VAT rate applies to certain goods and services like restaurant beverages (excluding alcoholic drinks), plants and vegetables, margarine, caviar, contraceptive products, housing repairs and more.
6% VAT rate
An even lower 6% VAT is charged on essentials like food, water, pharmaceuticals, medical equipment, books, newspapers, admission to cultural events and public transport.
Businesses Required to Charge VAT
All businesses and self employed persons making annual taxable supplies over €25,000 are legally required to register, collect and remit VAT in Belgium. Non-residents may still need to register if they make sales within the country exceeding this threshold.
VAT Registration Thresholds
There are two main VAT registration thresholds in Belgium:
- €25,000: For Belgian established businesses selling locally
- €35,000: For EU based distance sellers making exports into Belgium
Businesses must register with 15 days after exceeding thresholds. Registration can be done online via the BIZTAX portal.
Calculating VAT Amounts
VAT is calculated as a percentage of the net sale value i.e. excluding any VAT. Here is how to manually determine VAT amounts for standard and reduced rates in Belgium:
Standard rate VAT calculation
Net Price x 21% VAT Rate = VAT Amount
For €100 net sale:
€100 x 21% = €21 VAT
Reduced rate VAT calculation
Net Price x 12% (or 6%) VAT Rate = VAT Amount
For €100 medicine sale (6% rate):
€100 x 6% = €6 VAT
Filing VAT Returns
VAT reporting periods depend on annual turnover:
- Monthly returns: Turnover over €2.5 million
- Quarterly returns: Turnover €1-€2.5 million
- Annual returns: Turnover below €1 million
Returns and payments are generally due by the 20th of the next month. Submission can be done electronically via Intervat.
Penalties for Non-Compliance
Heavy financial penalties apply for errors, omissions and late VAT filings and payments in Belgium, including:
- Late registration: €1,250 one-time fine
- Late returns: 10-20% of VAT due per return
- Inaccurate returns: 10-200% of extra VAT due
- Unpaid VAT: Interest + 7% of amounts owed
Belgian VAT Calculator
Use the calculators below to easily determine standard and reduced VAT amounts:
Standard VAT Calculator
[Embed standard 21% VAT calculator]
Reduced VAT Calculator
[Embed 12% and 6% VAT calculator]
Tips for Managing Belgian VAT Compliance
Meeting all VAT obligations in Belgium can be complex for foreign companies. Here are some top tips:
Register for VAT On Time
Don’t risk paying fines for late registration. Apply immediately after hitting the mandatory VAT thresholds.
Keep Detailed Records
Maintain proper accounting records of all sales and purchases to accurately calculate VAT liabilities.
File Returns Accurately and On Time
Carefully prepare VAT returns, double check figures and set calendar reminders for upcoming deadlines.
Outsource Complex Compliance Tasks
Hiring local consultants can help overseas firms struggling with Belgian VAT rules.
Conclusion
Belgium runs a complex tri-rate VAT system with significant penalties for non-compliance. Businesses must register, collect and remit the correct amounts of 21% standard VAT or 12%/6% reduced VAT in a timely manner. Using the handy VAT calculator and following the tips above will help you stay compliant. Reach out for assistance if struggling with Belgian VAT as errors can prove costly.
FAQs
Q: What is the VAT registration threshold for foreign ecommerce companies?
A: The distance selling threshold is €35,000 for EU firms making exports to Belgium. Crossing this turnover level creates a Belgian VAT registration obligation.
Q: Do all goods and services have VAT added in Belgium?
A: No. Certain activities like financial services, insurance, healthcare, education and non-profit work are VAT exempt without credits. B2B exports are zero-rated under qualifying conditions.
Q: Can Belgian VAT be claimed back by foreign businesses?
A: Foreign companies not based or registered for VAT locally cannot recover Belgian VAT. EU firms may use the electronic cross border VAT refund procedure after registration with the tax agency to claim back Belgian VAT paid.
Q: What records are needed for VAT compliance in Belgium?
A: Businesses registered for VAT in Belgium must keep detailed accounting records of all vatable sales and purchases, invoices issued and received as well as VAT calculations and returns. Records should be kept for minimum 7 years.
Q: Can I report Belgian VAT returns in English?
A: No, the language for VAT compliance in Belgium is limited to only Dutch, French or German. Consult a local accounting firm for translation and filing assistance.