Reshuffling within Royal Decree No. 20
The reform reallocates various items between Table A (6 %) and Table B (12 %), and in certain cases shifts them to the standard rate of 21 %.
1. Fertilisers and plant protection products (pesticides)
Fertilisers in principle remain subject to the 6 % rate, but fertilisers mixed with plant protection products are explicitly excluded from this rate. At the same time, the 12 % rate for authorised plant protection products is abolished. As a result, plant protection products (pesticides) will in future be subject to the 21 % rate, including fertilisers mixed with such products.
2. Hotels and campsites
The VAT rate for the provision of furnished accommodation, with or without breakfast, as well as the making available of camping pitches, increases from 6 % to 12 %. This also applies to B&Bs that supply their services subject to VAT.
3. Restaurant and catering services
Restaurant and catering services remain subject to the 12 % rate, but the exclusion for drinks is refined. Until now, drinks consumed on the premises are subject to 21 % VAT. Going forward, this exclusion from the reduced rate would only apply to alcoholic beverages above specified thresholds: only beers with an alcohol by volume exceeding 0,5 % and other beverages exceeding 1,2 % would remain subject to the 21 % rate. Non-alcoholic drinks served in the context of restaurant and catering services will therefore, in principle, follow the rate of the service and be subject to 12 %.
4. Take-away meals
The draft extends the 12 % rate to the supply of take-away meals and to food and drinks prepared on the premises, based on a detailed definition linked to readiness for consumption and limited shelf life, with a maximum of two days from the day of preparation. Breakfast is not considered a “meal” in this context and therefore escapes the higher VAT charge. Certain luxury products remain explicitly excluded and continue to be subject to the 21 % rate.
5. Cultural, sports or entertainment venues
The right of admission to cultural, sports or entertainment venues in principle shifts from 6 % to 12 %. At the same time, a targeted exception is introduced for street theatre, theatre, choreography, circus, opera and classical music, which remain subject to the 6 % rate.
The rate adjustments are intended to enter into force on 1 March 2026. According to the draft, this applies to VAT that becomes chargeable as from that date, in accordance with Article 17, § 1 and Articles 22 and 22bis, § 1 of the VAT Code. This means that advances, reservations and pre-sales may in practice be decisive for the applicable rate.
Final remarks
This reshuffling of rates is primarily budget driven and is intended to generate additional revenue. The legislator therefore opts for targeted shifts and exceptions rather than a general rate increase. That approach, however, comes at a cost. It raises additional VAT determination qualification questions, increases the number of borderline cases and leaves greater scope for interpretation. As a result, VAT rate classification becomes more complex for both businesses and the tax authorities, while the practical scope of the distinctions will often only become clear in the context of audits and disputes.
The reform has also sparked significant political debate. In the Chamber, several interpellations have taken place. The criticism has centred mainly on the complexity of the delineation and on its enforceability in practice, in particular in relation to the 48-hour rule for take-away meals.