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Changes to VAT and social rates for gas and electricity in Belgium.

Starting April 1st, the 6% VAT rate for gas and electricity will become permanent, under a recently adopted bill in the Chamber. At the same time, a reform of excise duties will come into effect and social rates will be increased.

The VAT rate for gas and electricity has been reduced to 6% for almost a year. It was originally a "temporary" measure to reduce energy bills due to the surge in prices related to the war in Ukraine. As of April 1st, this rate will become permanent.


However, the loss in revenue that such a VAT reduction has for public finances will be offset by excise duties on these products.


The calculation of the excise duty rate will be based on the difference in VAT between 21% and 6% paid on average per MWh in 2021. The new excise duty system will distinguish between basic consumption and additional consumption. The basic consumption is set at 3,000 kWh for electricity and 12,000 kWh for natural gas.


In case energy prices exceed a set cap (100 euros per MWh for gas and 250 euros per MWh for electricity), the excise duties on basic consumption decrease. Additionally, if the price of gas falls below a minimum limit of 45 euros per MWh, the excise duties on additional consumption of natural gas increase.


The social rate, on the other hand, will increase again as of April 1st, by 7.7% for electricity and 9.5% for natural gas.


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