23 January 2024

Extension exemption for small enterprises to other member states

by Emiel Vanhée and Bert Vandorpe

From 1 January 2025, Belgian taxpayers will be able to apply the 'exemption for small enterprises' abroad. This extension will ensure that companies with a limited turnover that wish to expand their activities abroad will no longer have to register for VAT or file VAT returns there.

Current exemption for small enterprises

VAT taxable persons whose annual turnover in Belgium does not exceed EUR 25 000 may opt for the exemption for small enterprises for their supplies of goods and services.

The special scheme for small businesses significantly reduces a VAT payer's normal tax obligations. A taxpayer claiming this exemption should not:

  • charge VAT to its customers;

  • pass on VAT to the Treasury;

  • submit periodic VAT returns.

As no VAT is charged, the VAT on inbound transactions cannot be deducted. In addition, the taxpayer is assigned a VAT number preceded by the letters 'BE' (e.g. BE 0123.456.789).

Conditions for the future application of the scheme abroad

In order to assess whether the exemption for small enterprises applies, a double threshold is introduced, a national turnover threshold and a European turnover threshold. Each European country has its own national turnover threshold. For the exemption to apply, the Belgian company must not exceed this threshold in each country in which it has additional activities. In the Netherlands, for example, this threshold is EUR 20,000. The European turnover threshold, on the other hand, stipulates that the annual turnover in the European Union must not exceed EUR 100,000.


Applying for the exemption for small enterprises in Belgium

An existing Belgian company wishing to benefit from the special scheme for small enterprises in Belgium must submit an application for a change of VAT identification (form e604B) via MyMinfin.

New Belgian companies or companies that do not have a Belgian VAT number and wish to opt for this scheme must submit an application for VAT identification (form e604A).

Applying for the exemption for small enterprises abroad

If a Belgian company that qualifies as an exempt small enterprise wishes to use this scheme in another EU country, it must make a new prior declaration to the Belgian VAT administration. As a result, the company will receive an individual identification number with the suffix "EX" (for example: BE 0123.456.789 EX).

Turnover registration

Belgian VAT taxable persons who benefit from the exemption for small enterprises must declare their turnover to the Belgian VAT administration on a quarterly basis. This concerns both their turnover in Belgium and their turnover in Member States other than Belgium. The taxpayer must submit this information within the month following the end of the calendar quarter.

If the turnover threshold in the European Union is exceeded, the taxpayer must inform the Belgian VAT administration within 15 working days. From the date of exceeding the threshold, the exemption for small enterprises no longer applies.

Do you have any questions about the exemption for small businesses? Please contact your account manager or one of our specialists at

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