Belgium updates: Parliament to confirm earlier announced VAT rate changes for certain product categories

Belgium is confirming previously announced VAT rate changes, particularly for hospitality and leisure sectors. Two Royal Decrees are reaffirmed: one reinstates a 6% rate for heat pump installations retroactive to January 2026, while another increases VAT rates for pesticides and furnished accommodation from March 2026, impacting related businesses.

Belgium is moving forward with the parliamentary confirmation of previously announced VAT rate changes. This development is connected to earlier news in which we reported that Belgium planned to introduce new VAT rates for hospitality, leisure, and other specified sectors.

The earlier update focused on the expected VAT rate changes under Belgium’s 2026 federal budget, including the increase of certain reduced VAT rates and changes affecting sectors such as accommodation, leisure activities, takeaway services, and non-alcoholic drinks in restaurants and cafés.

The latest development does not introduce a completely separate reform, but rather confirms the legal continuation of measures already introduced earlier through Royal Decrees. Under Article 37, §2 of the Belgian VAT Code, Royal Decrees concerning VAT rates must be confirmed by the Chamber of Representatives within 12 months of their publication in the Belgian Official Gazette.

The draft law now confirms two VAT Royal Decrees amending Royal Decree No. 20 on VAT rates.

The first Royal Decree, dated 18 December 2025, reinstates the 6% reduced VAT rate for the supply and installation of heat pumps in, on, or near residential buildings. This measure applies retroactively from 1 January 2026 and is valid for five years.

The second Royal Decree, dated 14 February 2026, implements part of Belgium’s multi-year budget agreement and confirms VAT rate increases applicable from 1 March 2026. Under this measure, the VAT rate for pesticides and phytopharmaceutical products increases from 12% to 21%, while the VAT rate for furnished accommodation and camping pitches increases from 6% to 12%.

The changes may impact retailers and service providers operating in the affected sectors, especially sellers of pesticides and phytopharmaceutical products, garden centers, agricultural supply stores, DIY retailers, hotels, furnished accommodation providers, campsites, and businesses supplying and installing heat pumps. These businesses operating in Belgium should check that VAT rates are correctly configured, and used by seller for such products.

This confirmation is important because it provides legal certainty for transactions already processed under the new VAT rates and formally connects the previously announced measures with the parliamentary confirmation process to its completion.