VAT Identification

Before launching your self-employed activity, you must check whether you are subject to VAT. If this is the case, you will probably need to identify yourself to the FPS Finance - General Tax Administration.

Is Your Company Subject to VAT?

If your company regularly and independently supplies goods or services covered by the VAT Code, it is subject to VAT (VAT Code, article 4).

If your company exclusively carries out certain activities exempted by Article 44 of the VAT Code and, if certain conditions are met, it is subject to VAT but does not have to charge VAT to its customers, has no right of deduction and does not have to be identified for VAT purposes. This applies, for instance, to activities in the following fields:

• social or cultural;
• financial;
• medical.

If, as a natural person, you meet all the conditions to benefit from the VAT regime for the collaborative economy, you are subject to VAT if you carry out these operations independently and on a regular basis, but you do not have to charge VAT to your customers, you have no right of deduction and you do not have to be identified for VAT purposes.

In certain cases, foreign companies must identify themselves for VAT purposes, if they carry out operations in Belgium that are covered by the VAT Code and for which they are liable for VAT in Belgium.

For some activities, there may be doubt as to whether or not they fall under the VAT regulations.

When in doubt, check with your certified accountant, tax advisor or with the FPS Finance.

Where Should You Apply for VAT Identification?

In order to obtain your VAT identification, you must apply for it online before starting your activity. Your enterprise number will then be activated as your VAT number with the FPS Finance - General Tax Administration.

You can delegate this procedure to an authorised representative.

The business counter can also apply for VAT identification on your behalf, for a fee. The cost of this service varies from one counter to another.

What Are Your VAT Obligations?

Among other things, a business subject to VAT is required to:

• file VAT returns (electronically);
• pay to the Treasury the VAT it charges to its customers;
• provide an annual listing of taxable clients (electronically);
• keep accounts and issue invoices.

The Different VAT Regimes

The Normal Regime

The normal regime applies to all persons liable to VAT who do not benefit from any other regime.

Companies are required to submit a monthly return for the previous month's transactions.

Companies whose annual turnover does not exceed 2,500,000 euros excluding VAT may submit a quarterly return (exception: the ceiling is 250,000 euros excluding VAT for supplies of energy products, mobile telephony equipment, computers and their peripherals, accessories and components, as well as motor land vehicles subject to registration regulations). However, a company cannot opt for quarterly filings if the total amount of exempt intra-Community supplies and sales in the context of triangular transactions exceeded €50,000 during the quarter in question or in any of the four preceding quarters.

Special Regimes

Applying the normal VAT regime entails a number of tax obligations. In order to reduce these obligations, small businesses can opt for certain special regimes:

• The tax exemption regime applies to small businesses with an annual turnover not exceeding 25,000 euros (excluding VAT). These businesses are exempt from most of the VAT obligations.
• The flat-rate regime applies to businesses with an annual turnover not exceeding 750,000 euros (excluding VAT), which deal mainly with private individuals and which operate in certain sectors. As of 1 January 2020, this regime is limited to natural persons liable for VAT. Since1 January 2022, new VAT taxable persons and existing taxable persons subject to the normal tax regime or the tax exemption regime for small businesses who wish to adapt their VAT regime can no longer opt for the flat-rate regime. This regime will be abolished from 1 January 2028.
• The agricultural regime which applies to agricultural holdings. On 1 January 2022, this special regime has been adapted to take account of the diversification of farmers’ activities.

To benefit from one of these regimes, please apply online

Additional Information

For more information, please contact the FPS Finance:

FPS Finance
Contact centre
Tel.: +32 2 572 57 57
Website: https://finance.belgium.be/en/enterprises/vat

E-Services: https://finance.belgium.be/en/E-services/overview