New Belgian budget framework for the period 2026-29 includes several indirect tax measures

Albeit detailed (draft) legislation still needs to be prepared, the Belgian budget framework outlines several planned indirect tax modifications:

• The standard VAT rate will remain at 21%, but rates will increase/decrease for certain goods and services:
  • from 6% to 12% for hotel and camping accommodation, sport memberships, entertainment activities (eg cinema or festival tickets) and take-away meals;
  • from 12 to 21% for pesticides;
  • from 21% to 12% for non-alcoholic beverages served in restaurants and cafés.
• Excise duties on natural gas, heating oil, gasoline and diesel will be gradually increased throughout the budget period, while the excise duty on electricity will be reduced.
• The standard rate of insurance premium tax for non-life products will rise from 9.25% to 9.6%.
• A “parcel tax” of EUR2 will be introduced on small parcels originating from outside the EU, targeting low-value consignments shipped by non-EU online retailers.
• Increase of the air passenger tax:
  • long-distance flights (over 500 km): EUR10 as from 2027.
  • short-distance flights: EUR10.50 as from 2028 and EUR11 as from 2029.

Key takeaway

The announced measures will enter into force gradually, depending on parliamentary approval and publication in the Belgian Official Gazette. As effective dates may differ across sectors, businesses should closely monitor the legislative process to ensure timely compliance.