Belgium: Temporary VAT relief measures; medical supplies and real estate and construction sectors (COVID-19)

Belgium: Temporary VAT relief measures

The parliament on 17 December 2020 passed legislation providing temporary value added tax (VAT) relief measures in response to the coronavirus (COVID-19) pandemic.


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The VAT measures specifically are intended to provide better and cheaper access to preventive medical supplies and to stimulate the real estate and construction sectors. The provisions include:

  • An extension of the reduced VAT rate of 6% through 31 March 2021 with respect to the supply, intra-Community acquisition, and import of certain types of mouth masks and hydroalcoholic gels.
  • Introduction of the reduced VAT rate of 0% to be applied to the supply, intra-Community acquisition, and import of COVID-19 vaccines and medical aid devices for in-vitro diagnostics of the COVID-19 disease, as well as to services closely related to these vaccines and devices. This measure will be applicable in the period between 1 January 2021 and 31 December 2022.
  • Broadened scope of application of the reduced VAT rate of 6% for the demolition and reconstruction of real estate for the period between 1 January 2021 and 31 December 2022.

Read a December 2020 report prepared by the KPMG member firm in Belgium

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