1 July 2025 changes to reduced VAT rates promote ‘green’ priorities
The Belgian federal government has approved a draft program law introducing several VAT-related changes, as outlined in the 2025–2029 Coalition Agreement.
Read more in our Belgian VAT guide.
- The permanent application of the reduced 6% VAT rate for the supply of new dwellings following demolition and reconstruction. This rate will apply from 1 July 2025 onwards, replacing the current temporary regime that expires on 30 June 2025. The reduced rate applies only if the buyer uses the dwelling as their sole and primary residence, for long-term social rental, or for long-term rental to individuals who establish their domicile in the property.
- A reduction in the maximum allowable living area for eligibility—from 200 m² to 175 m²—though social housing projects remain exempt from this size limit. Additionally, in cases involving multiple buyers, each individual must meet the “own and only home” condition separately.
- The 6% VAT rate will no longer apply to the supply and installation of specific components of central heating systems that operate on coal fuels. This includes burners, control panels, and monitoring devices. The change also takes effect on 1 July 2025. Similarly, the reduced 12% VAT rate currently applied to the supply of coal will be abolished.
- Withdrawal of 6% VAT rate on the supply of coal.
Other reduced VAT rates in Belgium include:
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6% rate: Applies to basic necessities such as food, non-alcoholic beverages, water supply, books, newspapers, public transport, and certain home renovation services (for homes older than 10 years).
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12% rate: Applied to restaurant and catering services (excluding alcoholic drinks), and certain social housing-related supplies and services.
These changes reflect the government’s commitment to encourage energy efficiency, phase out fossil fuels, and make housing more accessible while maintaining reduced VAT rates for socially beneficial goods and services.
