VAT rate on catering, restaurant and cafe services to be reduced to 6%

On June 6, 2020, the Council of Ministers approved a draft royal decree aimed at reducing the VAT rate applicable to certain restaurant and catering services . This royal decree will come into force on Monday June 8, 2020, but will not be published in the Belgian Official Gazette until this week.

We already wish to inform the people concerned:

• that the reduced VAT rate of 6% will apply temporarily to restaurant and catering services from June 8, 2020 until December 31, 2020 ,
• excluding deliveries of beers with an actual alcoholic strength by volume exceeding 0.5% vol. and other beverages with an actual alcoholic strength by volume exceeding 1.2% vol.

Although the term “restaurant services” may suggest otherwise, this term also covers the supply of beverages without meals (to the extent that it is accompanied by a sufficient number of relevant ancillary services) at all possible outlets in drinks (cafes, taverns, etc.).

This measure will apply to all permanent or temporary establishments providing restaurant or catering services.

We will soon publish a comment on this rate change. The effects of the rate reduction on the flat-rate scheme will be published separately.

Sources:

• Belgian govt
• Orbitax
• Avalara

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