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Starting a business in Belgium? One of your first decisions is whether to register as a VAT franchisee<\/b> or as subject to VAT<\/b>. It affects your prices, your admin, and what you can deduct.<\/p>\n
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Here’s how to check your current status, when franchisee makes sense, and where it can bite you.<\/p>\n
\ud83d\udccc Not sure which status you’re currently registered under?<\/b> Check via how to verify your VAT type in Accountable<\/a><\/b> or this short video<\/a><\/b>. For the full rulebook on the regime, see Everything you need to know about the VAT franchisee status<\/a><\/b>.<\/p>\n<\/div>\n \n Stay under \u20ac25,000<\/b> in annual turnover (excluding VAT) and the franchisee scheme is on the table: no VAT on your invoices, no quarterly filings to chase, but no reclaiming VAT on what you buy either. One trade-off, both directions.<\/p>\n \ud83d\udca1 Good to know:<\/b> the \u20ac25,000 is your turnover before VAT, not your profit. A freelancer billing \u20ac2,100\/month is already close to the ceiling.<\/p>\n<\/div>\n \n 1. Your admin shrinks to almost nothing.<\/b> Instead of quarterly VAT filings, you’re down to one annual tax return and one annual client listing.<\/p>\n \n \u26a0\ufe0f Exception:<\/b> if intra-Community (IC) transactions apply to you (e.g. you buy or sell to other EU businesses), you may still need to file quarterly intra-EU listings or special declarations \u2014 it’s not automatically once-a-year for everyone.<\/p>\n<\/div>\n \n \ud83d\udcc4 When and how do I create an annual client listing?<\/a><\/b><\/p>\n \n 2. Cheaper-looking prices for private clients.<\/b> No 21% VAT on your invoice means your price looks lower to a private customer, for the same amount in your pocket.<\/p>\n \n Scenario:<\/b> Sara is a freelance photographer. She invoices \u20ac500 for a shoot as a franchisee. Tom, a VAT-registered competitor, earns the same net amount but has to invoice \u20ac605. To a private client comparing quotes, Sara looks like the better deal.<\/p>\n \n 3. No VAT to babysit.<\/b> You never collect VAT you have to set aside for the tax office.<\/p>\n \n 4. Great fit for low-cost, service-based work.<\/b> Consultant, freelance writer, small craft seller? You’re barely buying anything with VAT on it, so you don’t lose much by skipping deduction.<\/p>\n \n \u26a0\ufe0f If most of your clients are companies who’d deduct the VAT anyway, this “cheaper price” advantage mostly disappears. It only shines with private customers.<\/p>\n<\/div>\n \n The franchisee regime tends to be right when:<\/p>\n Your turnover sits comfortably below the threshold<\/p>\n<\/li>\n Your clients are mostly private individuals or small non-VAT businesses<\/p>\n<\/li>\n Your costs are low: no big equipment, stock, or renovation spend<\/p>\n<\/li>\n You want minimal accounting overhead, especially for a side or starter activity<\/p>\n<\/li>\n You’re not expecting growth that pushes past \u20ac25,000 this year<\/p>\n<\/li>\n<\/ul>\n Scenario:<\/b> Ali does weekend wedding photography alongside a full-time job. Low expenses, mostly private clients, modest turnover. Textbook franchisee territory.<\/p>\n \n 1. Losing VAT deduction is invisible until it isn’t.<\/b> Buy a laptop, a van, or software, and you pay full price including VAT with no right to claim it back.<\/p>\n \u26a0\ufe0f This is the most underestimated cost of the regime. It feels “free” until you make a big purchase.<\/p>\n<\/div>\n 2. Crossing the threshold has real teeth.<\/b> A small overshoot (up to 10%, or \u20ac27,500) may let you finish the year under the exemption. Go over by more than that, and you switch immediately, from the transaction that tipped you over.<\/p>\n \n Scenario:<\/b> Nora expects to bill \u20ac24,000 this year. In November, a surprise contract pushes her to \u20ac28,000, more than 10% over. She switches to standard VAT immediately, from that invoice, not waiting until January.<\/p>\n \n \ud83d\udcd6 When does a self-employed person become subject to VAT in Belgium? Your complete guide to the \u20ac25,000 threshold<\/a><\/b><\/p>\n \n 3. You can’t just hop back in.<\/b> Leave the exemption and you can only reapply from January 1st of the third<\/i> year after you leave. That’s a real waiting period, even if your turnover drops right back down.<\/p>\n \n \ud83d\udd04 Need to switch your VAT status? Here’s how<\/a><\/b><\/p>\n \n 4. There’s an EU-wide ceiling too \u2014 and it’s not automatic.<\/b> Since 2025, your total EU annual turnover must not exceed \u20ac100,000<\/b>, and you also need to stay under the national threshold of each individual EU country<\/b> where you do business. Unlike the standard Belgian exemption, this cross-border exemption (the EU SME scheme) isn’t applied by default \u2014 you have to actively apply for it. Once approved, you’re issued an extra VAT number with an “EX”<\/b> suffix alongside your regular number.<\/p>\n \n \ud83e\uddfe How to manage VAT on your European sales invoices with the OSS portal<\/a><\/b><\/p>\n \n 5. “No admin” isn’t zero admin.<\/b> You still file an annual client listing, even a nil one. Plus an intra-EU listing or a special declaration if a foreign supplier invoices you under reverse charge.<\/p>\n \n \ud83d\udccb How to submit a nil client listing in Intervat as a franchisee?<\/a><\/b><\/p>\n \n 6. Picking the wrong box is a pain to fix.<\/b> Selected “franchisee” when you’re actually subject to VAT? That means credit notes, awkward client conversations, and reissued invoices.<\/p>\n \n \ud83d\udee0\ufe0f I’m subjected to VAT but selected Franchisee in Accountable, What now?<\/a><\/b><\/p>\n \n 7. Some activities are excluded, full stop.<\/b> Construction, VAT groups, and certain Horeca or furnished-accommodation activities can’t use this regime, regardless of turnover.<\/p>\n \n Great fit for small, low-cost, consumer-facing activities comfortably under the threshold. Poor fit if you’re growing fast, spending a lot on deductible expenses, or mostly billing VAT-registered businesses.<\/p>\n \n \ud83d\udca1 Before registering, do a quick forecast of your expected turnover and expenses for the year. If you’re anywhere near \u20ac25,000, take a second look before you commit.<\/p>\n<\/div>\n \ud83c\udfa5 Join our free webinar<\/b> on the VAT franchisee regime: real examples, common mistakes, and how to switch if you need to.<\/p>\n \n \n Our Accountable Help Center<\/a><\/b> has all our articles to support you day-to-day. Questions? We’re here on chat or at support@accountable.eu<\/a><\/b> \ud83d\ude0a<\/p>\n","protected":false},"excerpt":{"rendered":" This article breaks down when the VAT franchisee scheme is the right choice and when it isn’t.<\/p>\n","protected":false},"featured_media":0,"template":"","help_label":[],"class_list":["post-31047","help_center","type-help_center","status-publish","hentry"],"acf":[],"yoast_head":"\nThe short version<\/h1>\n
Why people pick it: the real benefits<\/h1>\n
When it’s the smart choice<\/h1>\n
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The traps<\/h1>\n
The bottom line<\/h1>\n
\nWe’ll explain it all live<\/h1>\n