E-invoing in Belgium
Transform Your Financial Management with e-Invoicing in Belgium
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Flick team
Last updated at
July 1, 2025
Belgium has a complex tax system with high personal income tax, a corporate tax rate of 25 percent, and several other levies. In the 2024 International Tax Competitiveness Index, Belgium ranked 26th out of 38 OECD countries. An individual or a business that earns income in Belgium will need to understand the structure of the tax system. This guide will explain the main types of tax and the rates that apply to each of them.
Belgium has a highly developed but complex tax system designed to fund public services and redistribute income. The system includes both federal and regional taxes and applies to individuals, businesses, and legal entities that earn income or hold assets in Belgium. Taxation is managed by the Federal Public Service (FPS) Finance, along with regional and municipal authorities.
The main types of tax in Belgium include:
In Belgium, a company must file a corporate tax return if it is a resident, a foreign company with Belgian income or assets, or a non-profit conducting business. The filing must be done on the BIZTAX platform unless the company has an exemption. The return will include taxable profits, capital gains, and adjustments such as hidden reserves or excess depreciation. The standard tax rate is 25%, with a reduced 20% rate available for small companies. Deductions are allowed for innovation income, R&D, tax shelters, and e-invoicing costs. Penalties apply for late or incorrect filing.
Corporate Tax Rates
| Tax Rate | Condition |
25%
| Standard rate on all taxable income |
| 20% | On first €100,000 if company qualifies as a small company (CSA Art. 1:24) and pays at least €45,000 gross salary to one director |
Belgium applies a progressive personal income tax on individuals, where tax rates increase with income. The income is divided into brackets, and each part is taxed at a different rate. A portion of income is exempt through a personal tax allowance (€10,570 in 2024), which may increase based on personal circumstances. Non-residents can also claim the full allowance if at least 75% of their income is taxable in Belgium. Additional deductions apply for employment expenses, pension savings, donations, and some foreign income.
| Tax Rate | Taxable Income Range (EUR) |
| 25% | 0 – 15,820 |
| 40% | 15,820 – 27,920 |
| 45% | 27,920 – 48,320 |
| 50% | Over 48,320 |
For more details on personal income tax in Belgium, you can refer to FPS Finance.
Municipal Tax in Belgium
In Belgium, a municipal tax is charged in addition to personal income tax. This tax is collected by the municipality to fund local services such as public infrastructure, waste management, cultural programs, and safety. It helps each municipality raise revenue to meet the needs of its residents.
The municipal tax is calculated as a percentage of the personal income tax amount owed. It is applied automatically and appears on the final income tax assessment—there is no separate invoice. All residents liable for personal income tax are also liable for municipal tax.
Each municipality sets its own rate annually. The average ranges from 5% to 9%, depending on the region.
| Municipality | Rate (%) |
| Brussels | 6.0 |
| Antwerp | 7.0 |
| Ghent | 6.5 |
| Leuven | 6.7 |
| Charleroi | 8.5 |
Full list of municipal tax rates is available in the official document.
Value Added Tax (VAT) in Belgium
Value Added Tax is a tax on the sale of goods and services in Belgium. It applies at each stage of the supply chain. A business charges output VAT on sales and pays input VAT on purchases. The final cost falls on the consumer, but the business pays only the difference between the VAT it collected and the VAT it paid. Belgium applies three standard VAT rates, which are 6 percent, 12 percent, and 21 percent, depending on the type of goods or services.
| VAT Rate | Type of Goods or Services |
| 21% | Standard rate for most goods and services |
| 12% | Intermediate rate for items such as social housing or restaurant services |
| 6% | Reduced rate for essential items like food, books, or medicine |
| 0% | Zero rate for exceptional cases such as exports |
For more details on VAT in Belgium, you can refer to the FPS VAT guide
Excise duties are indirect taxes applied to specific products such as alcohol, energy products, and tobacco. These taxes are regulated at both national and EU levels and are collected to control consumption and generate revenue.
| Product | Excise Duty Type | Rate |
| Cigars | Based on retail price | 5% + 6.5% |
| Cigarettes | Mixed (price + quantity) | 34.04% of price + €6.89 + €171.11 per 1,000 pcs |
| Smoking Tobacco | Mixed (price + weight) | 31.5% of price + €136.00 per kg |
| E-liquids | Fixed per volume | €0.15 per ml |
| Product | Minimum Duty |
| Cigars | €0.1226 per cigar |
| Cigarettes | €326.50 per 1,000 pieces |
| Smoking Tobacco | €228.10 per kilogram |
For more details on excise duties in Belgium, you can refer to the official documents
Social Security Contributions in Belgium
Social security contributions are mandatory and help fund essential public services such as healthcare, pensions, and unemployment benefits. Both employees and employers contribute to the system, which is managed by the National Social Security Office (ONSS).
The social security system will provide coverage in the following areas:
Self-employed workers must also contribute through a social insurance fund. The standard rate is around 20.5 percent of annual net income, paid in quarterly advance payments.
For more details on social security contributions in Belgium, you can refer to the official documents or visit www.socialsecurity.be.
Environmental taxes are charges on activities that will cause harm to the environment. In Belgium, the government will apply these taxes on the use of a landfill, an incinerator, non-reusable packaging, short-distance air travel, and the discharge of polluted water. The aim of the tax is to reduce the level of pollution, support a circular economy, and promote the use of environmentally friendly practices by increasing the cost of harmful disposal methods.
Examples of environmental taxes in Belgium:
For more details on property tax in Belgium, you can refer to the official guidelines.
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