Temporary reduction of the VAT rate for restaurant and catering services
On 23 April 2021, the Belgian Tax Authorities announced that restaurant and catering services will be subject to the reduced VAT rate of 6 percent in the period between 8 May and 30 September 2021. Also, the supply of beverages for consumption on the spot will be subject to the reduced VAT rate. The mere supply, i.e. not intended to be consumed on the spot, of alcoholic beverages (i.e. beers with an effective alcohol by volume rate in excess of 0.5 percent and other beverages with an effective alcohol by volume rate in excess of 1.2 percent) remain subject to the standard VAT rate of 21 percent. The measure also applies when only beverages are served without food (if combined with sufficient relevant ancillary services) in any possible drinking establishment (e.g. cafes, taverns). The Royal Decree implementing this measure and more guidance will be available shortly. A similar measure applied last year in the period between 8 June 2020 and 31 December 2020 with the difference that under the new temporary measure, the reduced VAT rate also applies to the supply of alcoholic beverages for consumption on the spot.
Furthermore, the Belgian Tax Authorities announced that exemptions from customs duties and VAT for the importation of goods used in the fight against the COVID-19 disease are extended to apply until 31 December 2021. This measure is based on the decision of the European Commission (initially introduced by Decision (EU) 2020/491 of 3 April 2020).
If you have any questions on the above measures, do not hesitate to contact us.