Exempted professions Under Article 44 🗞️

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Navigating VAT exemptions can be one of the best ways to simplify your life as a self-employed professional in Belgium. Under Article 44 of the Belgian VAT Code, certain services are exempt from VAT, meaning you don’t need to charge VAT on your services or manage VAT on your purchases. But it’s important to know if you qualify for this exemption and how to manage it properly in your business. In this article, we'll break down the essentials of VAT exemptions, how they apply to different professions, and how you can handle them easily using Accountable.

1. What is Article 44 of the Belgian VAT Code?

Article 44 of the Belgian VAT Code provides VAT exemptions for certain types of professional services that are considered essential for public welfare or social benefit. This exemption means that, if your services qualify, you don't need to charge VAT on your invoices, which makes accounting and bookkeeping much simpler.

But it’s not automatic, only specific professions or activities qualify for this exemption. Let's dive into which services fall under this rule.

2. Key Areas Covered by Article 44 VAT Exemption

Medical and Paramedical Services

Who’s exempt?

• Medical professionals like doctors, dentists, physiotherapists, psychologists, and other healthcare providers.

• Paramedical services, including massage therapy, dietetics, and occupational therapy, when performed by recognized professionals.

Social Services

Who’s exempt?

• Social institutions such as nursing homes, daycare centers, home care services, and social care providers.

Educational Services

Who’s exempt?

• Formal education services leading to qualifications, such as those offered by schools, universities, and recognized training centers.

• Private lessons from professional teachers are also exempt.

Cultural and Artistic Services

Who’s exempt?

• Artists, musicians, and other performing professionals offering services like theater performances, concerts, and art exhibitions, when part of a non-commercial cultural initiative.

Other Services

• Public transport and certain insurance services are also exempt from VAT, provided they meet the criteria outlined in the VAT Code.

Here’s a table summarizing the exempted professions/services under Article 44 of the Belgian VAT Code

3. Why Should You Care About VAT Exemption Under Article 44?

Simplified Accounting

As a VAT-exempt professional, you don’t need to charge VAT on your services. This reduces the amount of paperwork and makes your tax filings more straightforward—simply focus on submitting your income tax returns.

Limited VAT Deductions

The downside to being VAT-exempt is that you can't reclaim VAT on your business expenses. This means that, if you purchase goods or services with VAT included, you won’t get that VAT back.

Avoiding Penalties

If you're unsure about your VAT status and make a mistake, you might face penalties. It’s essential to know when you should be charging VAT to avoid fines for under-reporting VAT.

4. How to Check if You Qualify for VAT Exemption Under Article 44

Here’s how to figure out if your profession is eligible for VAT exemption under Article 44:

• Nature of Your Service: Does your work fall under the categories of healthcare, education, social services, or arts? If so, you may qualify.

• Get Expert Advice: If you're uncertain, it's a good idea to check with a tax advisor to make sure you're following the correct VAT rules.

5. How to Manage VAT Exemption in Accountable

If you qualify for VAT exemption, managing your VAT status with Accountable is easy:

• Update Your VAT Status: In the settings of your Accountable app, simply mark your business as VAT-exempt to ensure you don’t charge VAT on invoices.

• File Annual Tax Returns: Even if you're exempt from VAT, you still need to file an annual income tax return. With Accountable, you can take care of this easily. Check out this article if you'd like to submit your annual tax return yourself: 🇧🇪 How to submit and pay my yearly income tax?

6. How to Apply for VAT Exemption and Maintain Your Status

Applying for VAT Exemption:

• Register with the Tax Authorities: To get started, you must register with the Belgian tax authorities (FOD Financiën). During registration, you’ll confirm that your profession qualifies for VAT exemption based on the services you provide.

• Confirm Your Status: After you register, the tax authorities will assess your business activities. If they meet the exemption criteria, your business will be officially classified as VAT-exempt. If you'd like to verify your VAT type, you can find detailed instructions in this article: How to verify your VAT type when setting up your account on Accountable

Maintaining Your VAT Exemption:

• Ongoing Reporting: Even if you're VAT-exempt, you’re still required to submit your annual income tax return—something you can easily do with Accountable. as an exempted selfemployed professional. However, as a VAT-exempt self-employed professional under Article 44 of the VAT Code, you’re not required to submit the annual client listing.

• Keep Records: Be sure to track your daily income and expenses, and keep all supporting documents in case the tax authorities request them. For example, certain professions like doctors are required to keep a receipt book (note: this doesn’t apply to all VAT-exempt activities). You can find more information in this article: How to keep a cash book and a receipt book

7. Common Mistakes to Avoid

Misunderstanding the Criteria

Many professionals assume that any service related to healthcare, education, or the arts is automatically exempt from VAT. However, it's important to verify that your specific activities meet the criteria outlined in Article 44. For further clarification, your social security counter can assist you, based on your NACABEL code.

Not Adjusting Your VAT Status

If you change your activities (like adding new taxable services), inform the tax authorities right away and adjust your VAT status. Failing to do so could result in fines and penalties.

8. Peppol and VAT Exemption

What is Peppol?
Peppol (Pan-European Public Procurement On-Line) is a set of standards designed to facilitate electronic invoicing and procurement between businesses and public authorities across Europe. If you’re VAT-exempt under Article 44, Peppol still plays a significant role in your VAT compliance if you engage in B2B activities, especially as electronic invoicing becomes mandatory in more EU member states, including Belgium.

Peppol and VAT-Exempt Professionals:
Even if you are VAT-exempt, it's important to be aware that Peppol may still require your participation in e-invoicing under specific conditions. For example, if you provide services to a VAT-registered business or public institution, they may require you to send invoices through the Peppol network. This ensures that your invoices meet all EU requirements for cross-border trade and VAT reporting.

Managing Peppol in Accountable:
If you're using Accountable and qualify for VAT exemption, you can still manage your invoices through the Peppol network by selecting the appropriate VAT status in your settings. Accountable supports Peppol e-invoicing, so you can issue compliant invoices with ease, ensuring you're always meeting EU obligations without the complexity.

9. Conclusion

Understanding VAT exemption under Article 44 is key for self-employed professionals in Belgium, especially if you're in healthcare, education, social services, or the arts. By knowing whether you qualify, how to apply, and how to manage your status, you can simplify your accounting, save time, and ensure compliance.

If you're unsure whether you qualify for the VAT exemption under Article 44, we strongly recommend confirming this with a business counter, an accountant, or the FOD Finances. Since we don't handle VAT number setups internally, it's best to get professional advice there first.

Author - Valesca Wilms

As content marketing lead at Accountable Belgium, Valesca writes about freelancing, self-employment, and taxes based on her own experience as a freelancer.

Who is Valesca ?