Belgium's government’s Social and Economic Protection Plan includes various measures aimed at helping the hospitality and events sector, including VAT reductions.
Under the plan, VAT would drop from 12% to 6% for meals, and from 21% to 6% for non-alcoholic beverages until the end of 2020.
Restaurant expenses for businesses and independent consultants would be 100% deductible, up from the current 69%. The cost of receptions and other events would also be fully deductible from corporate and personal income tax.
Related News
- Belgian economy needs €37.5 billion shock injection, says PS
- How going to a cafe or restaurant will work
- Prime Minister Wilmès announces additional support measures
Employers would also be able to purchase hospitality cheques for their employees up to a maximum of €250. These would need to be used in Belgian establishments, while they would remain valid for one year and exempted from social security deductions.
Doing nothing for the hard-hit hospitality sector would be costly, according to an internal government note. The State could incur about €1.4 billion in lost revenue.
The Brussels Times
