Skip links

Belgium domestic heating VAT cut to 6% extension to 31 Dec 2022

9.7% June inflation prompts 3-month extension of electricity, gas and heating VAT rate cut to 31 December 2022

As Belgian energy inflation hit 56% in June, the temporary cut in heating VAT rate was extended a further 3 months until the end of the year. This covers: electricity, natural gas and other heating system supplies. The rate cut on electricity was due to end at the end of September.

Many other EU states are cutting VAT on fuel.

Extension of prior cut

Belgium had imposed a temporary cut in domestic electricity and natural gas  Value Added Tax rate from the standard rate of 21% to 6%.  This was meant to apply between March and 30 September 2022. Only customers (households) with residential contracts can benefit from the measure. There will also be a short term excise tax cut on petrol and diesel, and an extension of the social gas or electricity tariff until September.

In addition, each household received an energy bill rebate of €100.

EU states reform VAT rate freedoms for economic crisis

In December 2021, EU finance minister agreed new reduced EU VAT rate setting freedoms which should come into place before April 2022.

The Finance Ministry is planning to put forward the measure to the Federal government to help combat inflation spike.

You can receive our regular global VAT and GST news by signing up today!

Leave a comment

Newsletter

Get our latest news right in your mailbox