Belgium has published the Royal Decree of 6 April 2022 in the Official Gazette, which provides for the repeal of the reduced VAT rate of 6% on both bicycles and electric bicycles. The law for the application of the reduced rate was published in April 2019, but its implementation was postponed until Annex III to Council Directive 2006/112/EC allowed such a reduced rate. As previously reported, Annex III was recently amended with the publication of Council Directive (EU) 2022/542 on 6 April 2022 to include, among other things, the supply of bicycles, including electric bicycles. Although the reduced rate for bicycles would have applied automatically from 6 April 2022, priorities have changed since the law for the reduced rate was published, and it was decided to reallocate the budget for the reduced rate to other mobility policies aimed at promoting the use of bicycles. As such, the Royal Decree repeals the reduced rate, and bicycles and electric bicycles remain subject to the standard VAT rate of 21%.
Source Orbitax
