As of January, 2025, several significant changes in Belgian commercial law and tax regulations are set to impact freelancers. Here’s an overview of the key updates:
VAT Compliance Framework (“VAT Chain”)
Significant changes to Belgium’s VAT compliance framework, known as the “VAT chain,” are scheduled for January 1, 2025. These reforms include updates to filing deadlines, stricter penalties, the introduction of a VAT provision account, and new procedures for refunds and corrections. They aim to modernize VAT processes and streamline compliance for taxpayers and service providers.
Read more details here: Freelancers in Belgium
VAT Exemption Scheme for SMEs
Effective January 1, 2025, Belgium is extending its VAT exemption scheme for small enterprises to include cross-border transactions within the EU. This change allows small businesses engaged in international activities to benefit from VAT exemptions, provided they follow the new procedures. Belgian taxable persons wishing to carry out taxable transactions in another Member State as of January 1, 2025, must contact the tax administration of that Member State or register for the One Stop Shop (OSS) regime if conditions are met.
Source: Deloitte
Reform of Extra-Contractual Liability Law
On January 1, 2025, Book 6 of the Belgian Civil Code, concerning extra-contractual liability, comes into force. A notable change is the removal of the quasi-immunity previously enjoyed by auxiliary persons, including freelancers. This means that injured parties can now file claims directly against freelancers for damages caused during their professional activities, especially in cases of “mixed fault” that breach both contractual obligations and basic rules of care.
More information: Freelancers in Belgium
Progressive Tax Brackets
For the tax year 2025 (declaring 2024 income), the progressive tax brackets for personal income tax in Belgium are as follows:
- Bracket 1: €0.01 to €15,820 – 25%
- Bracket 2: €15,820 to €27,920 – 40%
- Bracket 3: €27,920 to €48,320 – 45%
- Bracket 4: Over €48,320 – 50%
Additionally, everyone is entitled to a tax-free amount of €10,570. This amount is subject to progressive tax rates, effectively providing a ‘tax discount’ of €2,642.50 on total taxes.
Source: Accountable
Changes for individuals
other changes in Belgium are set to impact individuals’ finances in 2025:
Registration Tax Reduction in Wallonia
- Lower Rates for Homebuyers: Starting January 1, 2025, the Walloon Region will reduce the registration tax for purchasing a primary residence from 12.5% to 3%. This substantial decrease aims to make homeownership more accessible.
Pension Reforms
- Pension Bonus: From January 1, 2025, individuals who continue working beyond their earliest retirement date can earn a net pension bonus for up to three years. This initiative encourages prolonged workforce participation by offering financial incentives.
- Eligibility for Minimum Pension: Stricter rules will be implemented to qualify for the €1,500 monthly minimum pension, ensuring that this benefit is reserved for those meeting specific criteria.
Service Vouchers
Flanders
Significant changes to the service voucher system in Flanders are set to take effect:
- Price Increase
- Current Price: €9 per voucher.
- New Price: €10 per voucher.
- Elimination of Tax Deduction
- The tax deduction will be completely abolished.
- This means users will now pay the full €10 per voucher, effectively increasing the cost by nearly 39%.
- Previously, a 20% tax deduction (€1.80 per voucher) was available for the first 167 vouchers purchased annually, reducing the effective cost to €7.20 per voucher.
Brussels
In Brussels, the pricing structure for service vouchers will also be adjusted, with the following changes:
- The first 300 vouchers will cost €10.20 each.
- After the 301st voucher, the price increases to €12.40 per voucher.
- The 15% tax deduction associated with service vouchers will remain unchanged in Brussels.
Wallonia
In Wallonia, the cost of service vouchers will increase as follows:
- €12.20 for vouchers numbered between 401 and 500.
- €10.20 for the first 175 vouchers purchased.
- €11.20 for vouchers numbered between 176 and 400.
Stay updated on more 2025 changes
The federal government is currently in negotiations, and with a new government likely to be formed soon, additional changes could depend on their agenda. Subscribe to our newsletter Freelance Forward Facts to stay updated on the latest developments.