VAT: practical guides and steps

VAT affects almost every business from its very first invoice. You collect the tax on behalf of the state, then pay it over to the FPS Finance. This page helps self-employed people and companies keep that mechanism under control.

How does VAT work?

The principle fits in one sentence. You charge the tax to your customers, and you deduct the tax paid on your business purchases. So only the difference goes to the tax authorities. If deductible tax exceeds the tax due, you build up a credit. The standard rate stands at 21%, with reduced rates of 12% and 6% for certain goods and services.

Take a simple example. You invoice 1,000 euros plus 210 euros of tax, and you pay 100 euros of tax on purchases. You then pay 110 euros over to the state.

Everything starts with activating your number, which is your enterprise number preceded by BE. Small businesses may, however, opt for the exemption scheme below 25,000 euros of annual turnover. They then charge no tax, but they cannot recover any on their purchases either. Our guide to VAT activation compares both options.

Filing obligations

A standard taxable person files a periodic return through Intervat. Most small businesses file quarterly. Above certain thresholds, returns become monthly. Late returns lead to fines and late-payment interest. Other obligations also apply.

• The annual listing of your taxable business customers.
• The intra-Community listing when you sell to businesses in other EU countries.
• Structured electronic invoices between businesses, mandatory since 1 January 2026.

Our guide to the periodic VAT return sets out the calendar. For trade within the EU, also read our guide to intra-Community VAT and its reverse charge rules. Finally, our guide to e-invoicing in 2026 explains the expected formats.

Mistakes that cost money

• Exceeding the exemption threshold without telling the tax authorities.
• Deducting tax on private spending, or on mixed use without apportionment.
• Forgetting the reverse charge on a service bought abroad.
• Confusing the invoice date with the date the tax falls due.
• Mixing amounts before and after tax in your bookkeeping.

Such mistakes often surface during an audit, sometimes years later. Therefore, review your regime every year with your accountant. Also keep your purchase invoices in order, since they support every deduction.

Where to start?

It depends on your situation. Launching an activity alongside a job? Then read our guide to part-time self-employment, which also covers the first steps. Setting up a company? You activate your VAT number after registering with the CBE. For the bigger picture, the accounting obligations of businesses place this tax among your other duties. For official rules and forms, see the FPS Finance website.