VAT rates changing on 1 March 2026: what you need to know

Since 1 March 2026, significant changes to Belgian VAT rates have come into effect. As part of the budget agreement, certain reduced rates are being raised, primarily from 6% to 12%. This impacts your invoicing, accounting, and potentially your pricing. What do you need to know?

Why this change?

The Belgian government, as part of the budget agreement, has decided to harmonise VAT rates. The aim is twofold:

• Budget balance: additional revenue for the treasury
• Simplification: fewer exceptions and reduced rates

The adjustment mainly affects products and services that previously enjoyed a reduced rate of 6% and are now moving to 12%.

Which products and services are affected?

The main categories where the VAT rate has risen from 6% to 12%:

Food and hospitality-related

• Certain food products that previously fell under the reduced rate
• Takeaway meals and delivery of prepared meals
• Non-alcoholic beverages in certain contexts

Renovation and construction

• Certain renovation works on residential properties
• Specific building materials

Energy and utilities

• Certain energy products where temporary reductions have expired

What does this mean for your invoicing?

If you sell products or services affected by this change, from 1 March 2026 you must:

1. Adjust your VAT rates

Check in your invoicing software whether the correct VAT rates are configured. Most modern software such as Exact Online, Yuki and Odoo have released updates to support these changes.

2. Review your prices

A rise from 6% to 12% VAT means a price increase for the end customer (unless you absorb the VAT increase in your margin). Calculate carefully what the impact is on your selling prices.

3. Inform your customers

If your prices are rising due to the VAT increase, communicate this proactively to your customers. Explain that it is a legal change, not a price increase on your part.

4. Update your quotes

Outstanding quotes that are converted into invoices after 1 March must contain the new rate. Check whether your quotes have a validity date and always state whether prices are inclusive or exclusive of VAT.

Transition phase: what about ongoing projects?

For services and works carried out over time, transitional rules apply:

• Advance payments made before 1 March 2026: old rate
• Final invoices after 1 March 2026: new rate on the remaining amount
• Ongoing contracts: new rate from 1 March

If in doubt: consult your accountant on the correct application.

Impact on your accounting

The VAT change also has consequences for your administration:

• VAT return: check that returns after 1 March contain the correct codes and rates
• Historical comparison: take the rate difference into account when comparing turnover
• Stock management: stock purchased before 1 March at 6% VAT, sold after 1 March at 12% – watch the VAT calculation

What should you do now?

1. Check your product range
   Which products or services fall under the new rates?
2. Update your software
   Ensure your invoicing and accounting software correctly applies the new rates.
3. Adjust your price lists
   Both internally and externally (website, catalogues, etc.).
4. Communicate with customers
   Inform them about price changes and the reason behind them.
5. Consult your accountant
   Especially for complex situations or ongoing projects.

This is a good time to automate

Rate changes like these demonstrate how important it is to have a well-configured system. With modern accounting software:

• VAT rates are updated automatically
• You can easily make bulk changes
• Returns are automatically filled in correctly
• You always have a clear overview of your VAT position

If you are still working with manual processes or outdated software, this is a good time to modernise.

Conclusion

The VAT rate changes from 1 March 2026 require action: check which products and services are affected, update your systems, adjust your prices, and communicate with your customers. It is administrative work, but with the right tools and preparation it need not be a major burden.

Not sure if your software is up to date or need help with the transition? Get in touch for a no-obligation consultation.