Belgium: VAT reduction on bicycles

The Belgium Chamber of Representatives has proposed a reduction regarding the VAT rates imposed on bikes and e-bikes in order to encourage their use.

May 10 Belgium

The rate would be lowered from its current 21% to 6% and the measure will impact in the health, climate, environment and economics of the Belgium people according to the politicians that have backed this proposal.

The rate change will take affect once the EU VAT Directive is amended to make it possible to reduce or even zero rate all mechanically driven bikes and electric ones.

445,000 bicycles were sold in Belgium in 2017, of which 218,000 were e-bikes.

Since 2009, E.U. member states have been able to reduce the VAT on bicycle repairs. Belgium was one of the first states to do so, along with Finland, Greece, Ireland, Luxembourg, Malta, Poland, Slovakia and the Netherlands.

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Other recent VAT changes in Belgium include:

Supplies of plants

The reduced 6% rate of VAT is applicable to supplies of plants for the making and maintenance of gardens. Before this change they were subject to the standard 21% VAT rate.

Electronic publications

  • The reduced 6% VAT rate is applicable to supplies of electronic books and other electronic publications;
  • The zero VAT rate is extended to cover electronic newspapers and magazines.

These changes are in response to the EU’S recently implemented directive allowing Member States to align their VAT rates on digital and printed publications.

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