Global Daily Tax News, Belgium Legislating To Ensure Top-Rate Tax On Fossil Fuel Boilers, (Jun 11, 2025)

The Belgian Government has tabled draft legislation to ensure that the 21-percent rate of VAT applies to heating systems installed that operate on fossil fuels.

The legislation seeks to ensure that the 21-percent rate is applied rather than the concessionary six-percent rate where the heating system is installed as part of the renovation of a private house that is over 10 years old or as part of a project that qualifies for the demolition and reconstruction regime.

For existing contracts concluded no later than June 30, 2025, the reduced rate of VAT of six percent may be accessed for renovation or demolition and reconstruction work (if the relevant conditions are met).

The change is proposed to take effect from July 1, 2025. The Government has committed to releasing further guidance on the change.