- Belgium’s new coalition government has agreed on a tax reform program.
- The program includes changes to direct and indirect taxes.
- Direct tax changes include corporate and personal income tax amendments.
- Indirect tax changes include VAT, excise and customs duties, energy and packaging taxes, and a potential digital services tax (DST).
- The VAT rate for heat pumps and demolition and reconstruction supplies will be lowered to 6% for five years.
- New rules will be published regarding the lump sum deduction of input VAT on company bicycles.
- Near real-time reporting for B2B transactions and transactions with registered cash registers will be implemented starting in 2028.
- The mandatory use of cash registers will be extended to the hospitality sector and other fraud-prone sectors.
- The electricity excise duty for businesses will be lowered to the European minimum.
- Excise duties on zero-sugar drinks, tea, and coffee will be removed.
- The General Customs and Excises Duties Law will be reviewed and possibly amended.
- If there is no consensus on taxing digital services at the European or international level by 2027, Belgium will introduce a 3% DST.
- The tax reform aims to make the Belgian economy more competitive.
- Further notices on proposed changes are expected to be released throughout 2025.
- The changes are expected to take effect in 2026.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
