Belgium Approves Increase in Small-Business VAT Exemption Threshold

• The Belgian Parliament has adopted legislation increasing the annual turnover threshold for the small-business VAT exemption scheme from EUR 25,000 to EUR 30,000.  [vatcalc.com]
• The increase is expected to be phased in through annual increments of EUR 1,000 between 2027 and 2031, rather than introduced as a single immediate increase. [vatcalc.com]
• Businesses applying the exemption do not charge VAT or submit periodic VAT returns, but they cannot deduct input VAT on their purchases and investments. [beldoc.be], [cleartax.com], [vatcalc.com]

Extended article

The Belgian Parliament has adopted legislation widening the scope of the VAT exemption scheme for small businesses.

The measure increases the annual Belgian turnover threshold from EUR 25,000 to EUR 30,000. Available reporting indicates that the increase will be introduced progressively, through annual increments of EUR 1,000 between 2027 and 2031. [vatcalc.com]

The small-business exemption is an optional simplification regime. A qualifying business does not charge VAT to its customers and is generally relieved from filing periodic VAT returns. It nevertheless remains identified for VAT purposes and may continue to have specific compliance obligations, including those arising from certain domestic and cross-border transactions. [beldoc.be], [cleartax.com]

The principal trade-off is the loss of input VAT recovery. A business using the exemption cannot deduct VAT incurred on purchases and investments relating to its exempt activities. The regime may therefore be attractive to businesses with limited VAT-bearing costs and a predominantly private-customer base, but less favourable to businesses making significant investments or supplying customers that can recover VAT. [beldoc.be], [vatcalc.com]

The measure forms part of a wider administrative simplification and cost-saving package. The parliamentary vote took place on 17 September 2026.

The increased Belgian threshold should be distinguished from the cross-border EU SME scheme introduced in 2025. Under that framework, an EU-established business may apply a small-business exemption in another Member State if it remains below the relevant national threshold and its total EU turnover does not exceed EUR 100,000. [beldoc.be], [cleartax.com]

Businesses close to the threshold should review whether the exemption is commercially beneficial. The analysis should consider customer profile, expected growth, investment plans, input VAT exposure and the administrative implications of moving between the exemption and normal VAT regimes.

External links

• Read the Belgian Parliament’s voting record
• Review the increase in the Belgian VAT exemption threshold [vatcalc.com]
• Read the overview of the Belgian small-business VAT scheme [beldoc.be]
• Review the EU cross-border SME exemption rules in Belgium [cleartax.com]