Belgium, like all European Union (EU) member countries, follows the EU VAT Directive on value added tax (VAT) compliance. However, it is still free to set its own standard (upper) VAT rate, provided it is above 15%.

Suppliers of goods or services that are VAT registered in Belgium must follow the country’s VAT regulations and fulfil their VAT obligations. This includes charging the appropriate amount of VAT and collecting the tax for onward payment to the Belgian tax authorities through a VAT filing.

VAT was first introduced in Belgium in 1969, eventually replacing the old cumulative turnover taxes. VAT in Belgium is known as Belasting over de toegevoegde waarde (BTW) or Taxe sur la valeur ajoutée (TVA). The current rates are:

When a non-resident company receives its Belgian VAT number, it must start to follow the local rules on compliance. This includes:

• Issuing invoices with the disclosure details outlined in the Belgian VAT Code

• Electronic invoices with proper signature, authenticity, and agreement by the recipient

• Maintenance of accounts and records, which must be held for at least seven years

• Correct invoicing of customers for goods or services in accordance with the Belgian time of supply VAT rules

• Processing of credit notes and other corrections

• Use of approved foreign currency rates

There is no VAT registration threshold for annual turnover in Belgium. Overseas businesses must register for VAT in the country as soon as a taxable supply is made. 

Typical examples of taxable transactions include: 

• A supply of goods located in Belgium to a Belgian customer where the supply is not subject to the EU reverse charge mechanism  
  
• Exporting goods to a non-EU country
• Intra community acquisition — acquiring goods from EU member states where all criteria for intra-community movements are fulfilled
  
• Intra-community supplies of goods to another EU member state   
  

Foreign (non-EU) businesses making taxable supplies in Belgium must appoint a fiscal representative as part of their VAT registration process. 

The fiscal representative will have a joint responsibility for fulfilling the VAT compliance obligations of the business. The fiscal representative must be a resident of Belgium. 

EU businesses do not require a fiscal representative in Belgium for VAT purposes. 

The tax point (time of supply) rules in Belgium determine when the VAT is due. It is then payable to the tax authorities 10 days after the VAT reporting period end (monthly or quarterly).

For most goods, it is the time of delivery or passage of title. For services, it is the completion of the service.

Non-EU businesses selling in Belgium will need to appoint a fiscal representative alongside completing VAT registration and returns. Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients. 

Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.