Do I need to register for VAT in Belgium?
Not necessarily. A business with annual turnover up to €25,000 excluding VAT can use the exemption scheme. Registration is optional below that level and required above it.
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Detailed Explanation
## Do I need to register for VAT in Belgium?
A business established in Belgium can use the VAT exemption scheme (franchise de la taxe / vrijstellingsregeling) while its annual turnover does not exceed €25,000, excluding VAT. The threshold applies whatever the legal form of the business.
## The 10% tolerance
If turnover goes above €25,000 but stays within 10% of that limit, which is up to €27,500, the business keeps the exemption for the current year. It loses the exemption from 1 January of the following year.
## Registering below the threshold
The exemption is optional. A business can choose to register for VAT even below €25,000. Registering lets you recover VAT on purchases. The trade-off is that you must charge VAT and file returns.
## The proposed €30,000 threshold
In April 2026 the Belgian federal government announced a planned increase of the threshold to €30,000. As of September 2026 the legislation has not been enacted. Keep using €25,000 until the change is published in the Belgian Official Gazette.
## Rates once registered
Once registered, VAT is charged at 21% standard, 12% intermediate or 6% reduced, with a 0% band for a few items such as newspapers.
## How AccountsOS helps
Finn checks your turnover against the €25,000 threshold and warns you when you are close. Registration itself is done with the authorities. AccountsOS does not register you for VAT.
Source: https://finance.belgium.be/en/enterprises/vat/vat-obligation/vat-exemption-scheme-small-businesses
Real-World Examples
Freelancer below the threshold
A freelancer turns over €18,000 in the year. The exemption is available and no VAT registration is required, although it is optional.
Turnover within tolerance
A business turns over €26,000. It keeps the exemption this year and loses it from 1 January of the next year.
Turnover far above the limit
A business turns over €40,000. The tolerance does not apply and it must be VAT-registered.
Common Mistakes to Avoid
- Quoting €30,000 as the threshold before the law is enacted
- Forgetting that the tolerance only delays the loss of the exemption to the next 1 January
- Assuming registration below the threshold is forbidden
- Not counting all turnover, excluding VAT, when testing the limit
Frequently Asked Questions
What is the VAT exemption threshold?
€25,000 annual turnover excluding VAT.
Is a €30,000 threshold in force?
No. It was announced in April 2026 and is not yet enacted.
Can I register voluntarily?
Yes. The exemption is optional.
What is the 10% tolerance?
Turnover up to €27,500 keeps the exemption for the current year only.
Who do I register with?
FPS Finance. AccountsOS does not register you.
Practical Tips
- Track turnover monthly against the €25,000 line
- Weigh the cost of charging VAT against the VAT you could recover on purchases
- Check the Official Gazette before using any new threshold
- Ask your accountant before opting in voluntarily
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