How VAT works in 🇧🇪 if you are subject to VAT ?

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VAT can quickly become a source of confusion and it usually generates a lot of questions. You’ve probably already asked yourself one of these while doing your bookkeeping:

• Do I need to charge VAT?

• At what rate?

• Do I need to pay anything to the tax authorities… or will I be refunded?

Good news: this article will help you better understand, invoice, and report your VAT in Belgium. Once you understand the basic principles, VAT becomes much easier to manage.

🔹 VAT on your sales invoices

The VAT you apply depends on:

• Your client’s country

• Your client’s status (B2B or B2C)

Let’s break it down.

🇧🇪 Sales in Belgium

For sales to clients located in Belgium:

• You generally charge 21% VAT (the standard rate).

• This VAT must be declared and paid to the Belgian tax authorities.

• Declarations are submitted quarterly (or monthly if you are required to file monthly returns).

🇪🇺 B2B sales within the European Union

For B2B sales to VAT-registered businesses in another EU country:

• You charge 0% VAT.

• You apply the intra-Community reverse charge mechanism.

👉 This means your client:

• Declares the VAT in their own country

• Pays the VAT directly to their local tax authorities

🇪🇺 For your B2C sales within the European Union

You must, in principle, charge VAT.

Here is an important simplification rule 👇

If the total amount of your sales across several countries of the European Union (excluding Belgium) is less than €10,000 per year.
➜ then you can charge 21% Belgian VAT.

However, if you exceed €10,000 per year in total for your sales within the EU
➜ then you must charge the VAT rate of the customer’s country.

But that becomes complicated, right? Yes, we understand. To avoid having to file a VAT return in each country:

You can use the OSS system (One Stop Shop – formerly Mini One Stop Shop) and submit a single VAT declaration for the entire EU ✅

🌍 For your B2B sales outside the European Union

You charge 0% VAT.

In this case, it is considered an export outside the EU.

🌍 For your B2C sales outside the European Union

VAT does not apply here.

If you sell through a platform (e.g., Etsy, Amazon, etc.), the platform usually handles VAT for you (but it is always wise to verify).

🔹 VAT on your purchase invoices

Here too, the VAT treatment depends on your supplier’s country.
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🇧🇪 Purchases in Belgium

Your Belgian suppliers charge you 21% VAT.
​

You can deduct this VAT in your quarterly VAT return (or monthly, if applicable).
​

🇪🇺 Purchases within the European Union

For purchases from suppliers established in another EU country:

• The supplier generally invoices you with 0% VAT

• They apply the intra-Community reverse charge mechanism

👉 In this case, you must:

• Declare the VAT in Belgium

• Deduct it at the same time (the impact will be neutral if the VAT is fully deductible)

When you correctly record your intra-Community purchases in your Accountable account, the amounts will automatically appear in the correct boxes of your VAT return.

🔎 Special case – VAT exemption scheme

Self-employed individuals under the VAT exemption scheme must submit a special VAT return 629 for this type of purchase (as explained here).

👉 This return will be automatically generated in your Accountable account when you record purchases made within the EU.

🇪🇺 Expenses during your trips within the EU

For example:

• Hotel in France

• Restaurant during a business trip

➡️ You pay the local VAT (e.g. 20% in France).

❌ This VAT is not recoverable through your Belgian VAT return.
✅ However, the total expense remains tax-deductible for personal income tax purposes.

🌍 Purchases outside the European Union

For example: you make a purchase on Alibaba.
​

There is no VAT on the supplier’s invoice, BUT there is import VAT and possibly customs duties.
​

These amounts are collected by the carrier or customs authorities.

How does the VAT return work?

The VAT return is used to settle the VAT between you and the State.

Every quarter (or every month, depending on your situation), you must submit a VAT return to the tax authorities.
​

What does the VAT return calculate?

It determines the difference between:

• The VAT you charged your clients

• The VAT you paid on deductible professional expenses

👉 If the VAT charged is higher than the VAT paid, you pay the difference to the tax authorities.
​

👉 If the VAT paid is higher than the VAT charged, the tax authorities will refund the difference (or carry it forward to the next period).
​

Need help?

Do you have any other questions? Feel free to contact us via our chat.
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The Accountable Team

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 ?