New VAT Rules proposed for Streaming Services and Art Sales in Belgium

This draft law partially transposes EU Directive 2022/542, which updates the VAT Directive 2006/112/EC and Directive 2020/285. It introduces changes to the Belgian VAT Code and Royal Decree No. 20 concerning:

Key Amendments

Place of Supply for Streaming Services: Updates the VAT treatment for digital services related to cultural, sports, educational, and entertainment events, especially those streamed or virtually accessed.
Margin Scheme for Art and Antiques: Adjusts rules for the VAT margin scheme applicable to the sale of second-hand goods, artworks, collectibles, and antiques.
VAT Rate Flexibility: Aligns Belgian law with new EU provisions allowing:
- One standard VAT rate (≥15%)
- Two reduced rates (≥5%) for up to 24 items from Annex III
- Optional super-reduced or zero rates for up to 7 items under strict conditions

Implementation Context

Belgium had already applied temporary reduced VAT rates (e.g., for solar panels and heat pumps) under Royal Decree No. 20.
The directive includes both optional and mandatory provisions. Mandatory parts—especially those on service location and margin schemes—had to be transposed by 31 December 2024.
Due to political delays, this proposal aims to close the gap and fulfill Belgium’s EU obligations.

Technical Clarifications

The law distinguishes between streaming (active digital transmission) and downloads (passive access), impacting VAT place-of-supply rules.
For streamed events, VAT will now be based on the customer’s location, not the event’s physical venue—reflecting the shift to virtual consumption.

Source De Kamer