VAT reduction for the hotel and catering industry

Larissa Cobbaert   |  

Larissa Cobbaert

Larissa Cobbaert

Larissa is part of the Tax & Legal team.

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Last weekend, the Belgian Council of Ministers approved a draft Royal Decree to reduce the current VAT rate applicable to certain restaurant and catering services from 21 to 6%, starting as early as 8 June 2020. The measure will remain in force through 31 December 2020.

The supply of alcoholic beverages remains taxed at the standard rate of 21%.

There is also no change concerning take-away meals (with or without non-alcoholic beverages). They remain subject to the reduced rate of 6%.

So, which rates should you charge now? Here it is in a nutshell:

  1. Supply of meals to be consumed on site: 6%
  2. Supply of non-alcoholic beverages to be consumed on site: 6%
  3. Catering of meals and non-alcoholic beverages: 6%
  4. Alcoholic beverages: 21% (take-away or consumption on site)
  5. Take-away of meals and non-alcoholic beverages: 6%

The Belgian Royal Decree establishing this reduction will be published in the Belgian Official Gazette soon.

Should you have any questions about these options, please do not hesitate to contact us.

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