Belgium raises VAT rates on legal and TV services

Mon 21st Nov 2011

The new government has proposed some minor changes in the Belgian VAT rates in order to generate additional income.

Legal services VAT rise

Services provided by bailiffs and notaries, which are currently exempt from Belgian VAT, will now be liable to VAT at the standard 21% VAT rate. This is to bring the services in line with the European VAT Directive.

In the future Belgian companies will use the reverse charge rules in case the services are acquired from another EU country.

TV services VAT increase

VAT on TV-related services goes from the 12% to the 21% rate. This will resolve the difference in VAT rates on digital TV (currently 12 %) and cable TV (currently 21%).

The Minister of Finance will also bring clarity on the deductibility of VAT on company assets which are partly used for private purposes. The target is to make the company car benefit less attractive as a means of remunerating employees.