Belgium – Budget agreements

Belgium’s federal government has agreed on a budget for 2026, which introduces targeted VAT increases on specific services and products, while a proposed general increase of the standard VAT rate (from 21% to 22%) was abandoned.

Key Approved VAT Changes
The main changes involve moving several services from the reduced 6% VAT rate to a 12% VAT rate. These applies to:

– Hotel stays and campsite accommodations
– Sports activities and certain leisure activities
– Takeaway meals

Other VAT rate changes:

– the VAT rate on non-alcoholic beverages served at restaurants and cafés will decrease from 21% to 12%,
– VAT rate on pesticides will rise from 12% to 21%

A proposal to increase the standard VAT rate from 21% to 22% was part of the 2026 budget discussions as well but has faced political resistance. There will therefore be no general increase to the standard 21% VAT rate.

Other VAT Measures:

Administrative Modernization:
Belgium is continuing with administrative VAT reforms, which focus on e-invoicing, real-time reporting, and a new “VAT Provision Account” system to manage refunds more efficiently.

Demolition and Reconstruction:
The permanent reduced VAT rate of 6% for the demolition and reconstruction of private dwellings has been broadened and made permanent, subject to specific conditions.

Customs levy on small parcels:
A €2 customs levy is planned to be imposed on small parcels (under EUR 150) imported from outside the EU as part of its 2026 budget. The charge is primarily aimed at goods from non-EU e-commerce platforms and is expected to take effect sometime in 2026.

These measures aim to balance the federal budget and are expected to generate significant revenue for the Belgian treasury. Businesses affected by these changes will need to update their systems to ensure compliance with the new rates and administrative procedures.