Hereby, we would like to inform you about some new support measures introduced by the Belgian tax administration in the context of the Corona crisis.
Given the fact that the hotel and catering sector is one of sectors which suffered the most from the Corona crisis, the Council of Ministers has approved on 6 June 2020 a draft Royal Decree in order to introduce a temporary reduction in the VAT rate on restaurant and catering services. This Royal Decree will apply from 8 June 2020 until 31 December 2020. The publication of this Royal Decree in the Belgian Official Gazette and an additional circular will follow shortly.
A temporary VAT reduction on the provision of meals and non-alcoholic beverages will be introduced. Hotel and catering managers must pay 6% VAT on the provision of both non-alcoholic beverages and meals, instead of 12% (for meals) and 21% (for non-alcoholic beverages). The provision of alcoholic beverages (beers with an actual alcohol volume exceeding 0.5% vol. and other beverages with an actual alcohols volume exceeding 1.2% vol.) remains subject to the standard rate of 21%. This is a temporary measure applicable during the period from 8 June 2020 to 31 December 2020 and concerns all permanent or temporary establishments providing restaurant and/or catering services.
In this respect, it is important for users of the registered cash system to adapt their cash register programming as soon as possible. All items currently programmed with VAT code B (12%) should be adjusted to VAT code C (6%). The same applies to non-alcoholic items with VAT code A, these also need to be adjusted to VAT code C. For alcoholic beverages, there is no need to make any changes to your cash register programming.
Regarding the consequences of this temporary VAT reduction on restaurant and catering services on the lump-sum scheme, the Belgian tax administration still needs to communicate in this respect.
If you would like to receive additional information on this matter, the tax team of RSM Belgium is at your disposal : [email protected].