Belgium – VAT Exemption Threshold Raise to €30,000
In a move aimed at reducing administrative burdens for micro-enterprises and freelancers, the Belgian federal government has approved an increase in the VAT exemption threshold for small businesses from the current €25,000 to €30,000 in annual turnover.
This measure is part of a second package of administrative simplifications approved in early April 2026 and addresses long-standing concerns that the previous threshold had not kept pace with inflation and rising operating costs.
– New Threshold: The annual turnover ceiling for VAT exemption rises to €30,000.
– Eligibility: The regime applies to businesses established in Belgium, regardless of their legal form (sole traders, companies), provided their annual turnover remains below the new limit.
– Benefits: Qualifying businesses do not need to charge VAT on their sales, nor are they required to submit periodic VAT returns.
– Drowbacks: Businesses operating under this scheme cannot deduct input VAT on their purchases.
The measure still requires a formal legislative amendment to Article 56bis of the Belgian VAT Code, including parliamentary approval and publication in the Belgian Official Gazette, before becoming effective.
Why the Change?
The decision to raise the threshold, widely reported in early April 2026, aims to provide more flexibility to small businesses whose turnover is close to the current ceiling, allowing more sole traders and micro-enterprises to operate without complex VAT reporting obligations.
Current VAT Landscape (Pre-Legislative Amendment)
As of early April 2026, the official legislation is still undergoing amendment. Until final publication, the current rules remain in effect:
– Current Threshold: €25,000 per year.
– Excluded Sectors: The exemption does not apply to certain sectors, including construction, catering, or the selling of old materials.
Important Notes for Businesses
Small businesses considering entering the scheme or those currently benefiting from it should closely monitor the legislative process. The increase is not yet applicable. The exemption remains a “simplified” regime rather than a tax relief, as the loss of input VAT deduction can result in higher costs for companies with significant expenses.