Tax rate by region Belgium

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Overview of SaaS Sales Tax in Belgium:

Belgium adheres to the European Union’s (EU) VAT system, implemented in 1970 to ensure harmonized taxation across member states. Businesses operating within Belgium must comply with the Belgian VAT Act, which mandates the collection and remittance of VAT on applicable sales. In the context of SaaS, the standard VAT rate in Belgium is 21.0%. This applies to most digital services, unless they fall under specific reduced-rate categories or exemptions.

Certain categories of digital goods or services may be subject to a reduced VAT rate of 6.0%. However, as of November 2023, no digital goods or service categories qualify for complete exemption from VAT in Belgium. Businesses should carefully review the applicable VAT rates for their specific offerings to ensure correct tax treatment.

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Belgium

Belgium implemented a VAT system in 1970, aligning with EU regulations to improve tax compliance and efficiency.

Official government link: Federal Public Service Finance

21.00%

E-products and services VAT/Sales tax rate

6.00%

Reduced tax rate

Reduced tax rate product categories

E-Books and digital publications

Exempted product categories

No digital goods or services categories are exempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Non-resident companies have to register as soon as goods are being delivered or services are being provided

Online registration possible

Yes

Local representative needed

Yes

Registration procedure

Before you commence your business activities, you need to visit one of the VAT administration offices. There, you’ll need to fill out a VAT identification request form, known as form 604A, and submit it to the appropriate office. This service is provided at no cost.

List of digital and electronic services liable for tax

Web-related services include creating and hosting websites, as well as remote maintenance of software and hardware. Software services involve providing and updating software applications. Digital content encompasses providing images, text, information, and access to online databases. Entertainment services cover providing music, films, games, including gambling games. Digital broadcasts and events span various fields. Online education involves providing education and training online. Cloud-based products include Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS). Internet services involve providing websites, hosting services, and internet services. Online marketing generates income from online ads and affiliate marketing.

Penalties

Fines are applied for late registration, failure to provide a VAT invoice (up to 5000 euros per invoice) and late payment.

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Monthly

Filing deadline

By the 20th day of the month following the reporting period

E-invoicing requirements

Yes

Record keeping

Records of sales and purchases invoices, import and export documents, credit notes and any other relevante documentation must be kept for at least seven years.

How-To Guides: Belgium SaaS VAT

Step: 1 Threshold

Effective July 1, 2003, Belgium requires non-EU vendors (including online platforms) of digital services to consumers (B2C) in Belgium to register for and collect VAT, regardless of the sales amount. The obligation was expanded to EU-established digital services providers effective January 1, 2015.

 

Effective January 1, 2019, Belgium applies a VAT registration threshold of EUR 10,000 for EUestablished digital services providers. The threshold does not apply to non-EU businesses.

Step: 2 Business Registration

Managed by the Federal Public Service Finance (SPF Finances). Non-resident businesses must submit Form 604A to the “Foreigners” Team of the General Administration of Taxes.

Step: 3 TIN/VAT Number

The VAT Number (BTW-nummer / N° de TVA) is issued by the SPF Finances. It typically follows the format BE 0XXX.XXX.XXX.Rate: Standard VAT rate of 21% applies to most SaaS and digital services.

Step: 1 Standard VAT Rate

Belgium’s standard VAT rate of 21% applies to most SaaS and digital services.

Step: 2 VAT Formula

To calculate your tax amount, apply the following formula:

Tax Amount = Net Price x 21%

Step: 3 Product category eligible for reduced/exempt tax:

Yes.

  • 0% on certain digital newspapers/periodicals;
  • 6% on some digital publications.

Step: 1 Selling B2C

The seller must collect 21% VAT at the point of sale based on the customer’s location in Belgium. If using the Union or Non-Union OSS, VAT is collected and remitted through a single portal in the seller’s home EU country or country of registration.

Step: 2 Selling B2B

VAT is not charged by the seller provided they obtain and validate the buyer’s Belgian VAT ID (via VIES). The invoice must explicitly state “Reverse Charge.”

Step: 3 Invoice Requirements

Tax invoices must include:

  • Supplier & Buyer name/address
  • Supplier VAT ID
  • Buyer VAT ID (for B2B)
  • unique sequential invoice number
  • date of issue
  • description of services (SaaS)
  • taxable amount per rate
  • VAT rate applied (21% or 0%)
  • total VAT amount, and total payable in EUR.

Step: 1 Filing Interval

Default is Monthly. Quarterly filing is permitted if annual turnover is below €2,500,000 (~$2,625,000) and specific intra-community trade limits are not exceeded.

Step: 2 Filing Deadline

Monthly returns are due by the 20th of the following month. Quarterly returns are due by the 20th of the month following the quarter.

Step: 3 Submission

Electronic filing via the Intervat portal (within the MyMinfin platform). Payments are made via SEPA bank transfer to the SPF Finances account.

Step: 4 Record Keeping

Records must be kept for at least 7 years under Belgian law, or 10 years if using the OSS scheme for digital services

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Belgium’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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