What is VAT Exemption Scheme (Belgium)?
The VAT exemption scheme (franchise de la taxe / vrijstellingsregeling) lets a small business in Belgium skip VAT registration while annual turnover stays at or below €25,000, excluding VAT.
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Current Rate (Annual turnover, tested each calendar year)
€25,000 annual turnover threshold. A rise to €30,000 has been announced but is not yet law.
Example
A freelancer turns over €26,000 in a year. That is over €25,000 but within the 10% tolerance (up to €27,500), so the exemption stays for that year and ends on 1 January of the next year.
How VAT Exemption Scheme (Belgium) works in Belgium
The exemption applies whatever the legal form of the business. It is optional: a business below the threshold may still choose to register for VAT, for example to recover VAT on purchases. Exempt businesses do not charge VAT and cannot recover it.
If turnover goes above €25,000 but stays within 10% of the limit, which is up to €27,500, the business keeps the exemption for the current year and loses it from 1 January of the following year.
The Belgian federal government announced in April 2026 a planned increase of the threshold to €30,000. As of September 2026 the legislation has not been enacted, so €25,000 remains the figure to use until the change is published in the Belgian Official Gazette.
Related terms
VAT (TVA in French, BTW in Dutch) is charged on most goods and services in Belgium. The standard rate is 21%, with a 12% intermediate rate, a 6% reduced rate and a 0% band for a few items such as newspapers.
The enterprise number (numéro d'entreprise / ondernemingsnummer) is the unique 10-digit identifier the Crossroads Bank for Enterprises gives every Belgian company, association and self-employed person. The VAT number is BE plus the same 10 digits.
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