VAT in Belgium (BTW) explained simply: when to register and how much you pay in 2026

If you have started or want to start a business in Belgium, one of the most important things you need to understand is VAT (BTW – Belasting over de Toegevoegde Waarde).

Many Romanian entrepreneurs in Belgium face the same questions:

• Do I have to pay VAT?
• How much is VAT in Belgium?
• How is it calculated?
• What happens if I do not register?

In this complete guide, I explain simply and clearly, with concrete examples, everything you need to know about VAT in Belgium in 2026.

What is VAT (BTW)?

VAT is a consumption tax.

In practice:

• You collect it from the customer
• You pay it to the state
• It is not a tax you pay out of your own pocket (normally), you just collect it

Simple example:

You sell a service for 100 EUR

• VAT = 21%
• The customer pays: 100 EUR (service) + 21 EUR (VAT) = 121 EUR
• You keep: 100 EUR
• You give to the state: 21 EUR

When do you need to register for VAT in Belgium?

Not all businesses need to pay VAT. There is an important threshold.

VAT exemption regime (kleine onderneming)

If you have low income, you can benefit from exemption.

Threshold: 25,000 EUR / year

If you are below 25,000 EUR:

• You do NOT collect VAT
• You do NOT deduct VAT
• You invoice without VAT

Example:

Your annual income: 18,000 EUR

• You invoice: 100 EUR = 100 EUR (without VAT)
• You do not add VAT
• You do not declare VAT

If you exceed 25,000 EUR:

You become a VAT payer. This means:

• You must add VAT to invoices
• You must file VAT returns
• You must pay VAT to the state

What are the VAT rates in Belgium?

Belgium has 3 main rates:

Example:

You are a builder doing renovations:

• VAT can be 21% (standard)
• or 6% (for older housing)

How does VAT work in practice?

There are 2 types of VAT:

a) Output VAT (from customers)

Money you collect.

b) Input VAT (from expenses)

Money you recover.

Complete example:

You sell services:

• You collect: 1,000 EUR
• VAT (21%): 210 EUR
• Total collected: 1,210 EUR

You have expenses:

• Laptop: 500 EUR
• VAT: 105 EUR

What do you pay the state?

VAT payable = Output VAT - Input VAT

210 EUR - 105 EUR = 105 EUR

This is the actual amount you pay.

Concrete examples

Example 1 – Self-employed without VAT

• Income: 2,000 EUR/month
• Below threshold (25,000 EUR/year)
• You invoice: 2,000 EUR – No VAT payment

Example 2 – Self-employed with VAT

• Income: 3,000 EUR/month
• Invoice: 3,000 EUR + VAT (21%) = 630 EUR
• Total: 3,630 EUR
• Expenses: 1,000 EUR + VAT: 210 EUR
• VAT payable: 630 - 210 = 420 EUR

Example 3 – Common mistake

• You exceeded 25,000 EUR but did not register
• Risk: penalties, retroactive taxes, fines

Common mistakes

• Not knowing when you exceed the threshold – must be monitored constantly
• Spending the VAT money – VAT is NOT profit
• Not keeping invoices – you cannot deduct VAT
• Not filing returns on time – automatic fines

VAT returns in Belgium

Usually filed monthly or quarterly.

Includes:

• Output VAT
• Input VAT

How to optimize VAT legally

a) Deduct all eligible expenses

• Laptop
• Phone
• Car (partially)

b) Choose the right VAT regime

Sometimes it is better WITH VAT than without.

c) Work with a good accountant

An experienced accountant can help you optimize legally and avoid costly mistakes.

Conclusion

VAT in Belgium is not complicated if you understand it correctly:

• It is a tax you collect
• It is not your profit
• It can be legally optimized

If you are an entrepreneur or want to start, understanding VAT is essential to avoid problems and protect your profit.

Useful resources

• Taxes as self-employed in Belgium 2026 – how much you pay
• Checklist: first 30 days as self-employed in Belgium
• How to do your own marketing for your business in Belgium