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Belgium: Temporary VAT support measures due to COVID-19

On 17 December 2020, the Belgian Federal Parliament adopted new pieces of legislation that contain temporary VAT measures. These are expected to be published in the Belgian Official Gazette by the end of the year. The adopted VAT measures include the following:

  • Extension until 31st March 2021 of the reduced VAT rate of 6% with respect to the supply, intra-Community acquisition, and import of certain types of mouth masks and hydroalcoholic gels;
  • Introduction of the reduced VAT rate of 0% to be applied to the supply, IC-acquisition, and import of COVID-19 vaccines and medical aid devices for in-vitro diagnostics of the COVID-19 disease, as well as to services closely related to these vaccines and devices. This measure will be applicable in the period between 1 January 2021 and 31 December 2022;
  • Broadened scope of application of the reduced VAT rate of 6% for the demolition and reconstruction of real estate in the period between 1 January 2021 and 31 December 2022 (see our earlier flash on the draft legislation). The Belgian Tax Authorities published guidance (FAQ) on the application of this measure on their website (see here).

The above measures are aimed at facilitating better and cheaper access to preventive medical treatment in the fight against the Covid-19 disease, and at stimulating the real estate and construction sectors.

With this hopeful message, we wish you a great holiday season and a good start to the new year 2021.

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Van den Brande Wim
Head of Tax and Legal

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