How VAT works
A VAT-registered business acts as a collector for the State. It adds VAT to its sales, which is output VAT. It pays VAT on its business purchases, which is deductible VAT. It only pays the difference over to the administration. When deductible VAT exceeds output VAT, the business holds a VAT credit.
This mechanism explains why VAT does not weigh on the business but on the final consumer: they are the only link in the chain who cannot deduct anything.
A worked example
A consultant invoices 10 000 € of services over the quarter. At the standard rate of 21 %, they charge their clients 2 100 € of VAT. Over the same period they bought 2 000 € of equipment and professional services, on which they paid 420 € of VAT.
They therefore pay over 2 100 € minus 420 €, so 1 680 €. The 2 100 € collected was never theirs: this is the most common cash-flow mistake among new self-employed workers, and it comes due on the filing date.
Who files a return, and when
Every VAT-registered business files a periodic return. Monthly filers are due by the 20th of the following month, quarterly filers by the 25th of the month following the quarter. The annual listing of VAT-registered customers is due by 31 March.
Small businesses with an annual turnover of no more than 25 000 € may opt for the exemption scheme. They then charge no VAT, but they cannot deduct it on their purchases either. The scheme simplifies administration, it does not remove it: an annual listing remains due.
What people often confuse
Being VAT-registered and having to charge VAT are two different things. A doctor is a taxable person but exempt under article 44 of the VAT Code: they charge no VAT and deduct none. A self-employed worker under the exemption scheme is a taxable person who is simply excused from charging VAT below the threshold.
That distinction gained weight in 2026: those exempt under article 44 also fall outside mandatory electronic invoicing, whereas businesses under the exemption scheme are fully subject to it.
Two changes in 2026
Since 1 January 2026, structured electronic invoicing has been mandatory between Belgian taxable persons for their B2B transactions. And since 1 May 2026, the VAT current account has given way to the VAT provision account, with a new account number for payments and the end of the summer tolerance regime.
VAT is the area where a mistake costs you fastest, and it is also the first thing most self-employed workers delegate. The firms listed in the AccountMap directory state their specialisations, VAT among them.