VAT Exemption Scheme in Belgium (€25,000 threshold): 2026 Guide

What is the VAT exemption scheme?

The tax exemption scheme is a simplified regime for small businesses whose annual turnover does not exceed €25,000 (excluding VAT). Under this scheme, you do not charge VAT to your customers and you are exempt from most VAT obligations.

Who is eligible?

• Self-employed persons and small companies whose annual turnover stays below the €25,000 (excl. VAT) threshold;
• All legal forms (natural person or company);
• Some activities are excluded (immovable works, certain hospitality operations, supplies of new means of transport, etc.).

The benefits

• No VAT to charge: your prices are more competitive with private customers;
• No periodic VAT returns (monthly or quarterly);
• Administrative simplicity and lighter bookkeeping.

The drawbacks

• No right to deduct VAT on your purchases and investments;
• Of little interest if you mainly work with business customers (who recover VAT) or make large investments;
• Your invoices must state "Special exemption scheme for small businesses".

How to opt in?

• At creation, you choose the scheme when activating your VAT number.
• An existing business can change scheme by requesting it from its VAT office, according to the applicable terms and deadlines.

What happens if you exceed the threshold?

• An occasional overrun of up to 10% is tolerated over a year.
• Beyond that, you switch to the normal VAT regime from the transaction that exceeds the threshold: you must then charge VAT and file returns.

Exemption and cross-border operations

Since 2025, a cross-border exemption scheme within the European Union allows, under conditions, applying an exemption in other member states. Check this if you sell beyond Belgium.

Conclusion

The VAT exemption is ideal to start a small activity, especially with private customers. But it removes the right to deduct: assess your model (business vs private customers, investments) before choosing.

Unsure about the right VAT regime? LegalBelgique advises you and handles the activation of your VAT number under the most advantageous scheme.