Factsheet for measure
BE-2020-24/970
–
Updated
– measures in Belgium
Temporary tax reduction in the HORECA sector
Tijdelijke btw-verlaging naar 6% in de horeca
Background information
On 6 June 2020, the Council of Ministers approved a draft royal decree to reduce the VAT rate applicable to certain restaurant and catering services.
Despite the designation 'restaurant services', this also concerns the provision of non-food drinks (if accompanied by a sufficient number of relevant additional services) in all possible on-trade outlets (cafés, taverns,...).
This measure will apply to all permanent or temporary establishments providing restaurant or catering service.
Content of measure
As a result of this Royal Decree, from the 8th of June 2020 until the 31st of December 2020 a reduced value added tax rate of 6% will apply to restaurant and catering services, excluding the supply of beers with an actual alcoholic strength by volume exceeding 0.5% as well as other beverages with an actual alcoholic strength by volume exceeding 1.2% by volume.
There will be no exceptions other than the alcoholic beverages mentioned above. This means that dishes with products that are even priced at 21% (caviar, crawfish, lobsters, crabs, oysters, ...) are also subject to the 6% VAT rate.
Updates
The following updates to this measure have been made after it came into effect.
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06 August 2021
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On 21 April 2021, the Federal Government announced a new support package for the worst affected sectors, which includes the following measures:
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VAT reduction to 6% until 30 September 2021 in the hospitality sector on meals provided and all drinks.
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Exemption of the hotel and catering employers to pay the annual holiday contribution in 2021. The contribution will be paid by the federal government.
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Introduction of a reduction in social contributions in the third quarter of 2021 for employers who take back temporarily unemployed workers and/or hire additional workers.
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Various measures for workers who have become unemployed during the crisis.
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By way of exception, the hours worked by a student in the third quarter of 2021 in closed sectors that are allowed to reopen will not be counted in the annual quota of 475 hours.
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Use of measure
There is no registration of the uptake of the measure, given the general nature of the measure, it can be estimated that the majority of the sector can make use of it.
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Unknown
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Consulted
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Form
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Not applicable
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Unknown
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Sectoral or branch level
Involvement
Employers' associations like Horeca Vlaanderen have been negotiating lobbying heavily with the competent ministers to achieve additional support measures for the HORECA sector.
Views and reactions
As is to be expected, sectoral employers' organisations are clear proponents of these types of support measures. They have stated publicly that a reduction in VAT in particular is needed to increase the income of HORECA establishments and have defended this measure with the competent ministers.
Sectors and occupations
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This case is sector-specific (only private sector)
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Economic area
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Sector (NACE level 2)
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I - Accommodation And Food Service Activities
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I55 Accommodation
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I56 Food and beverage service activities
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This case is not occupation-specific.
Sources
