COVID-19 VAT rate cut
Belgium has approved a 6% reduced VAT rate on restaurants between 8 May and 30 September 2021. This will include non-alcoholic beverages consumed on premises. The regular rate is the 12% reduced rate. The current VAT rate in Belgium is 21%.
This is to help support the sector during the COVID-19 crisis. The latest lockdown is due to be eased from 8 May, when open air services from cafes and restaurants will recommence.
This is the second such temporary VAT cut on hospitality. The rate had previously been cut between 8 June and 31 December 2020. This new cut will cover:
- The supply of beverages for on-site consumption is subject to the reduced VAT rate.
- The supply (i.e., not intended for on-site consumption) of certain alcoholic beverages remains subject to the standard VAT rate of 21%.
- The reduced VAT rate applies when beverages are served without food (if combined with sufficient relevant ancillary services) in a drinking establishment (cafes or taverns).
Many other countries, including Austria, Germany and the UK, have been rolling over their initial 2020 Value Added Tax rate reductions to the hospitality sector during various lockdowns.
Check global VAT and GST rates with VAT Calc’s tracker. Countries such as the Germany, Lithuania and the UK are now in the process of withdrawing their tourism and hospitality VAT rate cuts introduced during COVID-19 crisis.
Future global VAT / GST changes