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Understanding VAT on Net Rental Income: Belgium

Is the net rental income from short term rental VAT inclusive? 6% incl? 21 incl% or none at all?

General rule of thumb:

From 1 January 2022, owners of furnished accommodations with additional services can no longer benefit from the VAT exemption for small businesses. Companies that generate less than 25,000 euros in turnover on a calendar year can opt for the VAT exemption scheme for small companies. In that case, such companies do not charge VAT, are not entitled to VAT deduction and do not have to submit VAT returns.

Following the new law of December 27, 2021, the government has decided that landlords of furnished rooms with additional service(s) can no longer benefit from the above-mentioned exemption scheme.

As a result, the lessors of furnished accommodation will be subject to all VAT obligations (including filing periodic VAT returns) and will have to levy 6% VAT on their rental services. At least, insofar as they rent out for periods less than three months and they offer at least one of the following additional services:

  1. Physical reception of guests for the majority of the day;
  2. or Daily provision of breakfast within the accommodation;
  3. or Standard provision, including the replacement of household linen (at least once a week).

VAT-Exempt Rentals

If none of these services are offered, the rental remains exempt from VAT.

This update clarifies the minimum requirements for a landlord to apply VAT to holiday rentals. It also means that VAT-registered landlords can benefit from VAT deductions—for example, recovering VAT on huswell services, construction, renovation, and other related expenses.

VAT Exemption When Working with a Property Manager:

If you partner with a property manager from our marketplace, you can choose how linen services are handled:

  1. Offered in your (the owner’s/host) name → VAT rules will apply
  2. Offered in the property manager’s name → The rental remains exempt from VAT

This decision is clearly stated in the rental agreement signed during online check-in—which serves as hard evidence for VAT control.

👉 Important: Always communicate your preference clearly with your property manager to ensure compliance.

Source: Vandelanotte