Recent VAT changes in Belgium include the latest change in VAT rate for supplies of electricity.  The rate will change from 21% to 6% and will take effect from1 April 2014 until 31 December 2015 with an option to extend the rate into 2016 and subsequent years.

This move is intended to support domestic taxpayers, and help alleviate sharp rises in the wholesale prices of power for the electricity companies. In addition to this reduction, the following other measures are being introduced:

  • The quarterly VAT return threshold is being increased from €1m to €2.5m per annum;
  • The cash accounting scheme for food in restaurants and catering services is being extended;
  • The resident VAT registration threshold is being increased from €5,580 to €15,000 per annum;
  • Some changes are introduced for the registration process for the VAT-exempt supply of public water, power and telecoms;
  • VAT applying to the letting of permanently installed equipment which has the direct effect that VAT may now be 100% recoverable on such expenses; and

There is an increased capital asset threshold for VAT – this is now set at €1,000 (up from €250) and means that smaller items with a value of less than the threshold will no longer be capital assets for VAT purposes and no longer subject to input VAT revisions.