Financial services such as payment and receipt transactions, credit provision or currency exchange are generally exempt from VAT. This means that no VAT is charged on the price of these services. For example, the price for processing a payment transaction is exempt from VAT (unless the option for taxation is applied) and thus cheaper at first sight than if VAT applied. However, on the basis of the fundamental principles of the VAT system, the supplier of exempt services cannot deduct the VAT paid for goods and services purchased for the provision of his exempt services (ie input VAT). As a result, the service provider will usually include non-deductible input VAT in the price of its services, which increases the price and distorts economic neutrality.
Source Wolters Kluwer
Latest Posts in "Belgium"
- Belgium Approves DAC8 and Crypto-Asset Reporting Bill, Expanding Tax Rules from January 2025
- Belgium Launches New VAT Provision Account and Payment Rules from May 2026
- Late Invoices for Intra-Community Acquisitions: VAT Deduction Allowed When Claimed Upon Receipt
- When Is VAT Registration Mandatory in Belgium? Key Rules and Steps for 2026
- Belgian VAT Returns 2026: Deadlines, Filing Methods, and Key Rules Explained
