Cost Reduction II: VAT exemption threshold raised from 2027

The Law of 23 September 2026 on Cost Reduction II and Miscellaneous Provisions, published in the Belgian Official Gazette on 7 October 2026 (p. 53229, reference C − 2026/007237), progressively raises the turnover threshold for the special VAT exemption scheme for small businesses. The text was adopted by the House of Representatives (documents K56-1593, full report of 17 September 2026), sanctioned by King Philippe on 23 September 2026, and countersigned by the Minister of Finance J. Jambon and the Minister of Justice A. Verlinden. It amends the Income Tax Code 1992, the VAT Code, the Law of 21 December 2009 on the excise regime for non-alcoholic beverages and coffee, the ordinary law of 16 July 1993, and the Law of 22 March 2006 on intermediation in banking and investment services.

The law is structured into six titles, with entry into force staggered between the date set by royal decree, 1 January 2027, and 1 July 2027. It follows the Law of 21 March 2024, which inserted Article 56ter of the VAT Code, and the Law of 10 February 2026, which amended it.

A VAT exemption threshold raised in stages

Article 26 replaces the 1st paragraph of paragraph 1 of Article 56ter of the VAT Code. Taxable persons established in Belgium whose annual turnover achieved in the country does not exceed the following amounts may benefit from the tax exemption scheme for their supplies of goods and services performed in Belgium:

26,000 euros for the year 2027;
27,000 euros for the year 2028;
28,000 euros for the year 2029;
29,000 euros for the year 2030;
30,000 euros for the year 2031 and subsequent years.

The same amounts are repeated in paragraph 2, 1st paragraph, 2°, of the same article. Article 26 enters into force on 1 January 2027 (Article 27).

Leases, electronic transmissions, and receipt books

Title 2 amends income taxes:

removal of the annex to the declaration concerning information relating to leases, via the repeal of a) of Article 53, 33°, of the Income Tax Code 1992 and paragraph 2/2 of its Article 307 (Articles 2 to 4); these provisions enter into force on the date fixed by a royal decree adopted in the Council of Ministers (Article 5);
extension of the possibilities for electronic transmission of communications from the FPS Finance, through the repeal of Article 302 of the same Code (Article 6) and Article 8 of the law of May 12, 2024, aimed at digitalizing relations between the FPS Finance, citizens, businesses, legal entities, and certain third parties (Article 7);
removal of the obligation to maintain receipt books and a journal of receipts and expenditures for persons exercising a liberal profession, a charge, or an office, with the exception of persons exercising a medical or paramedical liberal profession (Article 8), effective January 1, 2027 (Article 9).

End of excise duty on coffee, tea now targeted

Title 3 reorganizes the excise duties:

the words “and coffee” are repealed in the title and in several articles of the law of December 21, 2009, relating to the excise regime for non-alcoholic beverages and coffee (Articles 10, 11, and 17), as well as in the ordinary law of July 16, 1993 (Articles 20 to 23);
a definition of “tea” is inserted into Article 6 of the 2009 law (Article 12), and provisions i) and j) of its Article 7 are supplemented by the words “with the exception of tea” (Article 13);
“excise warehouse” authorizations issued for coffee and tea will terminate by operation of law upon the entry into force of the law (Article 19);
Title 3 enters into force on July 1, 2027 (Article 24).

Other provisions

A banking and investment services agent may, on their own account, carry out an activity referred to in Article 4, 4), of the law of April 25, 2014, provided that their intermediation activity does not involve the receipt of deposits or other repayable funds (Article 25).
Five royal decrees are confirmed: overtime (effective July 1, 2025), professional withholding tax (January 1, 2026), withholding tax on alimony payments made to non-residents (February 20, 2026), heat pumps (January 1, 2026), and the reform of certain VAT rates (March 1, 2026) (Article 28).

For freelancers and SMEs, the gain is twofold: a VAT exemption threshold that increases by 4,000 euros over five years and the removal of two administrative obligations, the “leases” annex and receipt books for non-medical liberal professions. Landlords and the professionals concerned must, however, take the timeline into account: the measures regarding leases depend on a forthcoming royal decree, while the new VAT threshold and the end of the excise duty on coffee will only apply in 2027.