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On 31 December 2025, Belgium implemented important changes to the VAT margin scheme applicable to the supply of works of art, collectors’ items and antiques. These changes stem from the transposition of EU Directive (EU) 2022/542 and are further clarified in Circular Letter 2026/C/14 issued by the Belgian VAT authorities.
The new rules significantly restrict the application of the margin scheme and have a direct impact on art dealers, galleries, auction houses and other taxable resellers.
EFFECTIVE START DATE
31/12/2025
THE OLD VAT REGIME (UNTIL 31 DECEMBER 2025)
Under the former regime, taxable resellers could opt to apply the VAT margin scheme to the resale of works of art, collectors’ items and antiques in a relatively broad range of situations.
In particular, the margin scheme could be applied not only to goods acquired without VAT (e.g. from private individuals), but also to certain goods acquired or imported with reduced VAT, provided the conditions of the EU VAT Directive were met. As Belgium applied a reduced VAT rate of 6% to the import and certain supplies of works of art, this meant that Belgian taxable resellers could sometimes purchase or import works of art at a reduced rate and still resell them under the margin scheme.
This mechanism often resulted in VAT being definitively taxed in the Member State of departure and created competitive advantages in cross-border situations, especially compared to Member States not applying reduced VAT rates to such goods.
THE NEW VAT REGIME (AS FROM 31 DECEMBER 2025)
As from the entry into force of the law of 19 December 2025, the link between the application of a reduced VAT rate and the margin scheme has fundamentally changed.
Under the new rules, taxable resellers may only apply the VAT margin scheme to the resale of works of art, collectors’ items and antiques if no reduced VAT rate was applied upon acquisition or import of the goods.
In practice, this means that:
- if the goods were purchased, imported or acquired intra-EU with application of the reduced VAT rate (generally 6% in Belgium), the margin scheme is no longer available;
- such goods must be resold under the normal VAT regime, with VAT due on the full selling price (generally at 6%, where applicable);
- the margin scheme remains possible only for goods acquired without VAT (e.g. from private individuals) or acquired/imported subject to the normal VAT rate.
The new regime also applies to goods that were already in stock on 31 December 2025. If those goods were originally acquired or imported with reduced VAT and are resold after that date, they must be taxed under the normal VAT regime, regardless of the date of acquisition.
LATE IMPLEMENTATION AND TRANSITIONAL TOLERANCE
EU Directive 2022/542 should, in principle, have been implemented earlier. Belgium only transposed the Directive at the very end of 2025, resulting in a delayed implementation.
Taking this delay into account, the Belgian VAT authorities have introduced a temporary tolerance. Taxable resellers are exceptionally allowed to exercise their right to deduct VAT on goods acquired or imported as from 2022 in a VAT return filed after the entry into force of the new law, provided that:
- the goods are resold under the normal VAT regime (i.e. not under the margin scheme); and
- the deduction is exercised at the latest by the end of 2026; and
- the taxable reseller can demonstrate, with supporting evidence, that the goods were effectively acquired or imported as from 2022.
This tolerance offers welcome relief but requires careful documentation and review of stock and historical transactions.
KEY TAKEAWAY
The reform marks a clear policy shift aimed at preventing competitive distortions within the EU art market. For Belgian taxable resellers, the margin scheme is no longer a default option and must be assessed on a transaction-by-transaction basis, taking into account the VAT treatment at acquisition or import stage.
Given the impact on pricing, cash flow and cross-border transactions, a review of existing stock, invoicing practices and VAT reporting is strongly recommended.
If you would like to receive additional information on this matter or require VAT assistance, the RSM Belgium Tax team is at your disposal via tax@rsmbelgium.be.
