Belgium considers VAT reform to bolster federal budget

The Belgian federal government is considering a major Value Added Tax (VAT) reform to help secure approximately 10 billion euros for the federal budget. The proposed restructuring aims to simplify the current complex system by moving toward three primary rates: 0 percent, 9 percent, and 22 percent.

Under this plan, the standard VAT rate would increase from 21 percent to 22 percent. The current reduced rates of 6 percent and 12 percent would be consolidated into a single 9 percent rate. To offset potential costs for consumers, a specific basket of essential basic food items could see the VAT rate reduced to 0 percent.

While the reform aims for simplification, it may lead to increased costs for many consumers. Products currently taxed at 6 percent could see an increase to 9 percent unless they qualify for the 0 percent essential goods category. Some studies suggest these changes could result in hundreds of euros in additional annual expenses for households.