VAT & compliance
VAT obligations for a shop in Belgium, explained simply
· 7 min read
VAT isn’t complicated if you take it step by step: the right rate on every sale, a record of every transaction, and a regular return. Here’s the essential for a Belgian retail business.
The three rates, and where they apply
In Belgium, three main rates coexist. The right habit is to assign a rate to each item once and for all, then let the register do the calculating.
- 6%: most food products sold in shops, water, medicines, books, flowers and plants, passenger transport.
- 12%: catering and the supply of meals (excluding drinks), certain fuels, social housing, margarine.
- 21%: the standard rate, which applies to everything else — drinks, non-food products, services, equipment.
The receipt
For a counter sale to a private customer, you must be able to hand over a receipt showing your identification, the date, the itemised list, the amount per VAT rate, and the total.
A register that prints this receipt automatically saves you from errors and omissions. The customer can decline the paper copy, but the receipt must exist.
The sales journal
Each day, total takings must be entered in a receipts journal, broken down by rate. With a register, this journal is kept automatically — that’s the role of the closing Z report.
Receipts, bills and vouchers must be kept and numbered in a continuous series.
The periodic return
Most shop owners file a quarterly VAT return (monthly above a certain turnover). You report the VAT collected on your sales and the VAT deductible on your purchases, and pay the difference.
A monthly export from your register, broken down by rate and by payment method, saves your accountant a considerable amount of time.
Record-keeping
Accounting books and records (including Z reports and exports) must be kept for 7 years in Belgium. A register that retains the history and lets you pull it up at any time covers this obligation.
In summary
Assign the right rate to each item, print a compliant receipt, close each day with a Z report, export for your accountant every month, and keep records for seven years. A well set-up register does almost all of it for you.
This article is for information only and does not replace advice from your accountant or from Belgium’s tax authorities (SPF Finances).