Belgium cuts VAT on electricity to 6%
- Mar 5, 2014 | Richard Asquith
The Belgian Federal government has confirmed reduction in the Belgian VAT rate on electricity from 21% to 6%. The new reduced rate is scheduled between 1 April 2014 and 31 December 2015.
The measure comes to help support domestic tax payers, and help alleviate sharp rises in the wholesale prices of power for the electricity companies.
In addition to this reduction, the following other measures are being introduced:
- The quarterly VAT return threshold is being increased from €1m to €2.5m per annum
- The cash accounting scheme for food in restaurants and catering services is being extended
- The resident VAT registration threshold is being increased from €5,580 to €15,000 per annum
- Changes for the registration process for the VAT-exempt supply of public water, power and telecoms
- Simplified self-invoice VAT regime