Belgium’s draft VAT bill, submitted on October 9, 2025, modernizes the VAT Code by extending the 6% reduced rate to all supplies of art, antiques, and collectibles, while restricting the margin scheme to prevent competitive distortions. It also updates place-of-supply rules for virtual events and streaming services to reflect digital market realities and align national legislation with EU Directive 2022/542.
Belgium Introduces Draft VAT Bill to Align with EU Directive and Modernize Taxation of Art, Antiques, and Virtual Services
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Belgium
Author: Vukašin Santo
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Fiscal subject related
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1540
Content accuracy validation date:
29.10.2025
Content accuracy validation time:
08:26h
On October 9, 2025, the Belgian government submitted a draft VAT bill to the Chamber of Representatives, introducing targeted updates to the VAT Code. The proposal aims to modernize rules governing the place of supply for certain services, as well as the taxation of art, antiques, and collectibles, in line with Directive (EU) 2022/542 on VAT rates. The bill will take effect upon its publication in the Belgian Official Gazette.
- Generalized Reduced VAT Rate for Art and Collectibles
The draft law broadens the application of the reduced VAT rate of 6% to the supply, intra-Community acquisition, and importation of art objects, collectibles, and antiquities.
Previously, Belgium applied the reduced rate only in limited circumstances, such as imports or sales made directly by artists or their heirs. Under the new proposal, these conditions are removed, extending the 6% VAT rate to all supplies of the specified goods. This reform is enabled by the flexibility granted to EU Member States under Directive 2006/112/EC, Annex III, point 26.
- Restriction on the VAT Margin Scheme
In conjunction with the reduced VAT rate, the draft introduces restrictions to the profit margin scheme (régime de la marge bénéficiaire).
Taxable dealers will no longer be allowed to apply the margin scheme for art, collectibles, or antiques if the goods were acquired or imported under the reduced 6% rate.
This change aims to prevent competitive distortions in the EU market. Without this restriction, dealers could combine a reduced purchase VAT rate with margin taxation, gaining an unfair advantage in cross-border sales. The reform ensures that such goods re-enter the normal VAT regime, where VAT applies based on the destination Member State.
- Updated Place-of-Supply Rules for Virtual Events and Streaming Services
Reflecting post-pandemic market realities, the draft also updates localization rules for services connected to cultural, artistic, sporting, scientific, educational, and entertainment events, particularly those available virtually or via streaming.
The updated framework distinguishes between taxable persons (B2B) and non-taxable persons (B2C):
- For taxable persons, virtual access to events will be taxed based on the customer’s location (economic establishment or residence), not the physical location of the event.
- For non-taxable persons, services related to virtual events will also be taxed where the consumer is established or resides, rather than where the event takes place physically.
Additionally, the bill expands the King’s authority via Royal Decree to adopt “use and enjoyment” measures, preventing double taxation, non-taxation, or competitive distortions in connection with the new virtual service rules.
- Entry into Force
The draft law will enter into force upon its publication in the Belgian Official Gazette, partially implementing Directive (EU) 2022/542 and further aligning Belgium’s VAT framework with the evolving digital economy.
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