Belgium: New FAQs on the VAT treatment on the supply of furnished accommodation
The VAT change for the supply of furnished accommodation, which went into effect on July 1, was explained by the Belgian Federal Public Service-Finance.
The Belgian VAT Act exempts the rental of immovable property from VAT in most cases. The supply of furnished rooms in hotels, motels, and similar facilities is an exception to this regulation.
The VAT exemption was modified in December 2021, effective 1 July 2022, in order to differentiate between VAT-taxable and VAT-exempt supply of such accommodations.
Furnished rooms provided for less than three months are liable to VAT if the following conditions are met:
- They are provided by a hotel or motel; or
- They get services such as physical reception, the supply of domestic linens, and daily access to breakfast.
If no further services are available in a non-hotel or motel for less than three months, the operation is excluded from the 6% VAT rate.
Source: finances.belgium.be
