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Belgium domestic heating VAT cut to 6% extension to 31 March 2023

9.9% August inflation prompts second 3-month extension of electricity, gas and heating VAT rate cut to 31 March 2023

As Belgian energy inflation hit 50% in August, the temporary cut in heating VAT rate was extended a further 3 months until the end of quarter 1, 2023. This covers: electricity, natural gas and other heating system supplies. The rate cut on electricity was due to end at the end of December 2022.

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.

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