Key takeaways
- Belgium applies four VAT rates: 21%, 12%, 6% and 0%.
- The 21% standard rate is the default: it applies to anything not expressly classified elsewhere.
- The 6% and 12% reduced rates are reserved for precise lists set by royal decree no. 20.
- On an invoice, every line carries its rate and the VAT is broken down per rate in the totals.
Knowing which rate to apply is not an administrative detail: the seller answers for the rate shown on the invoice, and a wrong rate is corrected at their expense. The VAT rates in Belgium fall into four levels set by royal decree no. 20 of 20 July 1970: a standard rate of 21%, an intermediate rate of 12%, a reduced rate of 6% and a zero rate. This article sets out what each rate covers, with examples, and shows how the rate lands concretely on a structured invoice.
The principle is easy to state and demanding to apply: the rate depends on the nature of the good or service, never on the will of the parties. The law classifies, not the contract.
The four VAT rates in Belgium
The framework rests on a single text: royal decree no. 20 sets the rates and allocates goods and services between them. It works through lists. Table A gathers what falls under the 6% rate, table B what falls under 12%, and the zero rate covers a handful of special cases. Everything else, which is most economic activity, is subject to the 21% standard rate.
standard rate
the default, most goods and services
intermediate rate
targeted categories, table B
reduced rate
basic necessities, table A
zero rate
a few special cases
The 21% standard rate: the default rule
The 21% rate is the bedrock of the system. It rests on no list: it applies to any good or service not expressly placed elsewhere. Most services, sales of everyday consumer goods other than food, equipment and materials are subject to it.
This default logic has a practical consequence. When you hesitate over the rate for an unusual supply, the right question is not "which reduced rate might fit?" but "is this good or service in a reduced-rate list?". If the answer is no, the rate is 21%.
The 6% reduced rate: essential goods and services
The 6% rate corresponds to table A of royal decree no. 20. It covers goods and services regarded as basic necessities, across a fairly broad spectrum. The most common examples belong to everyday household life.
Examples of goods and services at 6%
Foodstuffs
Most goods intended for human consumption.
Water distribution
The supply of water through mains.
Medicines and pharmaceutical products
The products listed in table A.
Books, newspapers and periodicals
Printed publications meeting the conditions.
Passenger transport
The transport of passengers and their luggage.
Certain immovable works also fall under the 6% rate, subject to strict conditions on the nature and age of the dwelling. As these regimes change with successive amendments to the royal decree, always check the conditions in force before invoicing a project at 6%.
The 12% intermediate rate
The 12% rate corresponds to table B. It is narrower than the 6% rate and targets specific categories rather than a broad principle. The most visible everyday case is catering.
Table B also covers housing under social policy and margarine, among others. As with the 6% rate, the only authoritative reference is the list in royal decree no. 20, updated regularly.
The zero rate and the general principle
The zero rate (0%) is distinct from an exemption: VAT is within scope, but at a rate of 0%, which preserves the seller's right to deduct. It covers a few special cases, notably daily and weekly general-information newspapers and periodicals meeting the conditions, and certain recovered materials. These cases are grouped in table C of royal decree no. 20.
Keep the hierarchy in mind: the 21% standard rate is the rule; 12%, 6% and 0% are exceptions, each defined by a list. That architecture is why you always start from the 21% rate and then ask whether an exception applies.
| 6% | 12% | 21% | |
|---|---|---|---|
| Examples of goods and services | Food, water, medicines, books, passenger transport | Catering, social housing, margarine | Most other goods and services |
| Basis in royal decree no. 20 | Table A | Table B | Default, outside the lists |
| Default rate |
The VAT rate on your e-invoice
The rate does not live only in your head: it must appear correctly on the invoice. On a structured invoice compliant with the EN 16931 standard and the Peppol BIS Billing 3.0 profile, every line carries a VAT category and rate, and the document contains a VAT breakdown per rate. The totals are only accepted if they reconcile with that breakdown.
That is where the right rate becomes a matter of compliance, not just arithmetic. An invoice that adds lines at 6%, 12% and 21% must present three consistent VAT sub-totals. Invoicing software applies the rate to each line, builds the breakdown and blocks inconsistencies before sending. For a reminder of the data that must appear on the document, see the mandatory details of a Belgian invoice.
The right VAT rate on every invoice, without thinking about it
YouInv applies the VAT rate to each line, breaks the VAT down per rate and sends compliant Peppol invoices in a few clicks.
The VAT rate is not a setting you choose: it is a legal qualification of what you sell. Starting from the 21% standard rate and then checking whether the good or service appears in a reduced-rate list is the safest approach. Where a category leaves lasting doubt, the reference remains royal decree no. 20 and, if needed, advice from your accountant or the FPS Finance.
Further reading
- The VAT exemption scheme for small businesses: when you charge no VAT at all.
- The periodic VAT return in Belgium: where the amounts collected per rate end up.
- Reverse charge of VAT in Belgium: the cases where the customer reports the VAT.
The reference source is authoritative: the VAT rates page of the FPS Finance and royal decree no. 20 of 20 July 1970.
What are the VAT rates in Belgium?
Belgium applies a standard rate of 21%, an intermediate rate of 12%, a reduced rate of 6% and a zero rate (0%) reserved for a few cases. The 21% standard rate applies by default to any good or service not expressly placed in a reduced-rate category.
What is the standard VAT rate in Belgium?
The standard VAT rate in Belgium is 21%. It is the default rate: it applies to the vast majority of goods and services, except those that royal decree no. 20 expressly places at 12%, 6% or 0%.
Which goods and services are subject to the 6% reduced rate?
The 6% rate covers goods and services regarded as basic necessities: foodstuffs, water distribution, medicines and pharmaceutical products, books, newspapers and periodicals, passenger transport, and certain immovable works. The exact list is set out in table A of royal decree no. 20.
What does the 12% VAT rate correspond to?
The 12% intermediate rate covers targeted categories: restaurant and catering services, housing under social policy and margarine, among others. These categories are listed in table B of royal decree no. 20. Beverages follow separate rules depending on their nature.
Who decides the VAT rate that applies to a product?
The allocation of goods and services across the rates is set by royal decree no. 20 of 20 July 1970, amended regularly. The rate depends on the nature of the good or service, not on the seller's choice: applying the wrong rate exposes you to a correction.
