Belgium Mar 2026 reduced VAT rise accommodation – guidance

LATEST: 13 February 2026: Belgium’s government has delayed the planned 1 March 2026 reduced VAT rate rises from 6% to 12% on takeaway food, cultural and sports events. This follows it receiving a strongly critical advisory opinion from the Council of State criticisms.

But the rise on hotel (short term furnished accommodation) and campsite accommodation and pesticides goes ahead on 1 March 2026. These will rise from 6% to 12%.  At the same time pesticides and plant-protection products will increase from 12% to the standard 21% rate.

The Council of State focused on two controversial measures:

1. Cultural sector VAT changes on hold

The planned increases VAT from 6% to 12% for certain cultural and entertainment events (such as concerts, festivals, and comedy shows), while retaining the 6% rate for “higher” cultural activities such as theatre, opera, ballet and classical music.

The Council found that the distinction between categories lacks clear, objective criteria and risks breaching principles of fiscal neutrality and legal certainty. It recommended a substantial redrafting of the measure.

1. Takeaway food VAT increase – on hold

The planned raises VAT from 6% to 12% for ready-to-eat food products with a shelf life of two days or less, except breakfast items.

The Council criticised the definitions as vague and arbitrary, particularly around the concept of “preparation,” warning this could lead to inconsistent and absurd outcomes. It concluded the measure may violate principles of legality, equality and VAT neutrality.

2026 Budget reduced VAT rate rise

The 2026 Budget had been settled in mid-December on:

• There will be no general VAT increase
• Takeaway meals, hotel stays, campsites, sport and leisure activities will move to 12 per cent VAT.
• VAT on non-alcoholic drinks service in restaurants, cafes etc will shift from standard 21% to reduced 12% rate
• VAT on pesticides will rise to the standard rate of 21%
• Gas will avoid a VAT rise until at least 2030 but will gradually become more expensive due to higher excise duties; and
• electricity will become cheaper thanks to lower excise duties.
• A new €2 Belgian Customs levy on small parcels

Two month delay in reduced rate hike

The delay to March 2026 followed sustained pressure from the hotel, leisure and hospitality sectors. Industry groups argued that a January implementation date would disrupt pricing for advance bookings and long-term contracts already in place, creating operational and commercial difficulties at the start of the year. The government has confirmed that the postponement applies uniformly, with no carve-outs or sector-specific exceptions.

See more in our Belgian VAT guide.

Avoiding a standard VAT rate rise again

Belgium’s standard VAT rate has held at 21% since 1996, even as most EU peers have moved upward. A rise to 22% would align Belgium with Ireland (23%), Finland (25.5%) and Greece (24%), while remaining below the EU average of around 22.4%.

From a fiscal design standpoint, VAT is the most efficient revenue lever available:

• Immediate yield: collected through existing systems with minimal administrative delay.
• Broad base: affects all consumption, unlike targeted income or corporate taxes.
• EU-compliant: easily monitored under the VAT Directive (2006/112/EC) and the Own Resources Decision, which allocates part of VAT receipts to the EU budget.

However, in Belgium’s unique context — where automatic wage indexation directly links consumer prices to salaries — any VAT increase risks fuelling inflationary feedback. That makes it politically radioactive for both unions and employers’ federations, whose collective agreements would automatically adjust wages upward.

For Brussels, the logic is clear: consumption taxes deliver stable, digital-traceable revenue, especially as the EU rolls out real-time reporting and e-invoicing mandates under VAT in the Digital Age (ViDA).