Belgium – VAT reform to merge 6% and 12% reduced rates into a single 9% rate

Belgium is actively debating a major VAT rate change that would combine two reduced Value-Added Tax (VAT) rates (6% and 12%) into a single, intermediate 9% rate. While this move aims to simplify the tax system, it could lead to higher prices for everyday essentials and household services.

Currently, Belgium uses a few different reduced VAT rates in addition to its standard 21% rate:

– The 6% rate: Used for basic needs like food, medicine, books, and cultural events.

– The 12% rate: Used for restaurant food, energy, and social housing.

This plan is still discussed as part of the country’s federal budget, and no final laws have been passed yet. The government must weigh the benefits of a simpler system against the risk of making life more expensive for everyday families. For example, there are ongoing talks about expanding 0% tax rates for basic items like fresh fruits, vegetables, and medicines to help offset these costs.