Following the VAT rate changes introduced during the summer of 2025, Belgium’s “2026-2029 Budget agreement” sets out further VAT rate changes that will apply starting on 1 March 2026, as well as other indirect tax measures that will be implemented in 2026 and 2027 (for prior coverage, see the article in the October 2025 issue of Indirect Tax News).
Key VAT Rate Changes The budget agreement introduces targeted adjustments to both reduced and standard VAT rates across several sectors:
- Hotel and rent of similar accommodation and camping sites: The VAT rate increases from the reduced VAT rate of 6% to the reduced 12% rate.
- Sports and entertainment (e.g., cinema and festival tickets, excluding cultural activities): The VAT rate increases from the reduced VAT rate of 6% to the reduced 12% rate.
- Take-away meals and take-away non-alcoholic beverages: The VAT rate increases from the reduced VAT rate of 6% to the reduced 12% rate.
- Consumption of non-alcoholic beverages in restaurants and bars: The VAT rate drops from the standard VAT rate of 21% to the reduced 12% rate.
- Pesticides: The VAT rate increases from the reduced rate of 12% to the standard 21% rate.
Excise Duties and Other Indirect Tax Measures The budget agreement also introduces the following excise duty adjustments:
- Gas and domestic heating oil: Excise duties will gradually increase;
- Electricity for residential use: Excise duties will decrease although the reduction is expected to be smaller than the increase applied to gas.
- Diesel and petrol: Excise duties will increase.
In addition, starting on 1 July 2026, Belgium will implement the EUR 3 EU-mandated levy on parcels valued below EUR 150 coming from outside the EU.
BDO Takeaway
Rather than adopting a general increase in the standard VAT rate (from 21% to 22%) or consolidating the (6% and 12%) reduced rates into a single rate of 9%, the Belgian government has chosen a targeted approach, adjusting VAT and excise duties for specific goods and services. Important details—such as the precise definition of “take-away meals” or the distinction between “cultural events” and “entertainment”—are still being finalised, along with transitional measures in the legislative text. Given the widespread impact of these changes across sectors including e-commerce, energy, hospitality and tourism, food and beverage and entertainment, affected businesses should begin assessing the implications now. This includes reviewing:
- Product and service classifications;
- Pricing strategies;
- System configuration updates; and
- Reporting and compliance obligations and procedures.
