Navigating VAT exemptions can be one of the best ways to simplify your life as a self-employed professional in Belgium. Under Article 44 of the Belgian VAT Code, certain services are exempt from VAT, meaning you donât need to charge VAT on your services or manage VAT on your purchases. But itâs important to know if you qualify for this exemption and how to manage it properly in your business. In this article, we'll break down the essentials of VAT exemptions, how they apply to different professions, and how you can handle them easily using Accountable.
1. What is Article 44 of the Belgian VAT Code?
Article 44 of the Belgian VAT Code provides VAT exemptions for certain types of professional services that are considered essential for public welfare or social benefit. This exemption means that, if your services qualify, you don't need to charge VAT on your invoices, which makes accounting and bookkeeping much simpler.
But itâs not automatic, only specific professions or activities qualify for this exemption. Let's dive into which services fall under this rule.
2. Key Areas Covered by Article 44 VAT Exemption
Medical and Paramedical Services
Whoâs exempt?
Medical professionals like doctors, dentists, physiotherapists, psychologists, and other healthcare providers.
Paramedical services, including massage therapy, dietetics, and occupational therapy, when performed by recognized professionals.
Example:
A physiotherapist providing therapeutic treatments doesn't need to charge VAT on their services.
Social Services
Whoâs exempt?
Social institutions such as nursing homes, daycare centers, home care services, and social care providers.
Example:
A social worker offering mental health services in a recognized facility is exempt from VAT.
Educational Services
Whoâs exempt?
Formal education services leading to qualifications, such as those offered by schools, universities, and recognized training centers.
Private lessons from professional teachers are also exempt.
Example:
A private tutor providing mathematics lessons is exempt from VAT if they are recognized as a professional educator.
Cultural and Artistic Services
Whoâs exempt?
Artists, musicians, and other performing professionals offering services like theater performances, concerts, and art exhibitions, when part of a non-commercial cultural initiative.
Example:
A musician performing at a charity concert is exempt from VAT if the performance is meant for public cultural benefit.
Other Services
Public transport and certain insurance services are also exempt from VAT, provided they meet the criteria outlined in the VAT Code.
Hereâs a table summarizing the exempted professions/services under Article 44 of the Belgian VAT Code
Exempted Professions/Services | Description | Exceptions |
Medical and Health Services | Doctors, dentists, physiotherapists, and other recognized medical professionals providing therapeutic services. | Non-therapeutic services (e.g., cosmetic treatments like beauty salons and wellness services) are not exempt. |
Paramedical Services | Audiologists, dietitians, speech therapists, occupational therapists, podiatrists, and physiotherapists. | Only services performed by recognized professionals are exempt. |
Social Services | Nursing homes, home care services, and social welfare services for the elderly or disabled. | Must be provided for medical or social purposes, not for commercial gain. |
Educational Services | Services provided by recognized educational institutions (general and vocational education, tutoring, etc.). | Private non-professional courses (e.g., non-certified instructors) are subject to VAT. |
Cultural and Artistic Services | Artists, musicians, and performers providing services for cultural or non-profit events, exhibitions, or performances. | Commercial cultural events are not exempt. Only non-profit or public interest events qualify. |
Sports Services | Non-profit sports organizations offering physical education, sports events, or gym services for members. | Commercial sports activities or for-profit organizations are subject to VAT. |
Social Welfare Services | Services offered by social care institutions, including counseling, and care for those in need or with disabilities. | If services are provided for profit or outside the scope of welfare purposes, they may be subject to VAT. |
Financial and Insurance Services | Banking, insurance, and reinsurance services, as long as they donât involve debt recovery. | Not all financial services are exempt; only those directly related to non-commercial activities. |
Non-profit Services | Services provided by non-profit organizations, including charitable, religious, or philosophical institutions. | If the services are for commercial purposes or result in unfair competition, they may be subject to VAT. |
Transport Services | Public transport and medical transport services (e.g., ambulance, transport of organs, blood, and milk). | Private or for-profit transport services are not VAT-exempt. Only public or charity-driven services are. |
3. Why Should You Care About VAT Exemption Under Article 44?
Simplified Accounting
As a VAT-exempt professional, you donât need to charge VAT on your services. This reduces the amount of paperwork and makes your tax filings more straightforwardâsimply focus on submitting your income tax returns.
Limited VAT Deductions
The downside to being VAT-exempt is that you can't reclaim VAT on your business expenses. This means that, if you purchase goods or services with VAT included, you wonât get that VAT back.
Avoiding Penalties
If you're unsure about your VAT status and make a mistake, you might face penalties. Itâs essential to know when you should be charging VAT to avoid fines for under-reporting VAT.
4. How to Check if You Qualify for VAT Exemption Under Article 44
Hereâs how to figure out if your profession is eligible for VAT exemption under Article 44:
Nature of Your Service: Does your work fall under the categories of healthcare, education, social services, or arts? If so, you may qualify.
Get Expert Advice: If you're uncertain, it's a good idea to check with a tax advisor to make sure you're following the correct VAT rules.
5. How to Manage VAT Exemption in Accountable
If you qualify for VAT exemption, managing your VAT status with Accountable is easy:
Update Your VAT Status: In the settings of your Accountable app, simply mark your business as VAT-exempt to ensure you donât charge VAT on invoices.
Go to Account > Settings > Taxes tab, find the VAT type field, and select Exempt of VAT from the dropdown menu.
File Annual Tax Returns: Even if you're exempt from VAT, you still need to file an annual income tax return. With Accountable, you can take care of this easily. Check out this article if you'd like to submit your annual tax return yourself: đ§đŞ How to submit and pay my yearly income tax?
6. How to Apply for VAT Exemption and Maintain Your Status
Applying for VAT Exemption:
Register with the Tax Authorities: To get started, you must register with the Belgian tax authorities (FOD FinanciĂŤn). During registration, youâll confirm that your profession qualifies for VAT exemption based on the services you provide.
Confirm Your Status: After you register, the tax authorities will assess your business activities. If they meet the exemption criteria, your business will be officially classified as VAT-exempt. If you'd like to verify your VAT type, you can find detailed instructions in this article: How to verify your VAT type when setting up your account on Accountable
Maintaining Your VAT Exemption:
Ongoing Reporting: Even if you're VAT-exempt, youâre still required to submit your annual income tax returnâsomething you can easily do with Accountable. as an exempted selfemployed professional. However, as a VAT-exempt self-employed professional under Article 44 of the VAT Code, youâre not required to submit the annual client listing.
Keep Records: Be sure to track your daily income and expenses, and keep all supporting documents in case the tax authorities request them. For example, certain professions like doctors are required to keep a receipt book (note: this doesnât apply to all VAT-exempt activities). You can find more information in this article: How to keep a cash book and a receipt book
7. Common Mistakes to Avoid
Misunderstanding the Criteria
Many professionals assume that any service related to healthcare, education, or the arts is automatically exempt from VAT. However, it's important to verify that your specific activities meet the criteria outlined in Article 44. For further clarification, your social security counter can assist you, based on your NACABEL code.
Not Adjusting Your VAT Status
If you change your activities (like adding new taxable services), inform the tax authorities right away and adjust your VAT status. Failing to do so could result in fines and penalties.
8. Conclusion
Understanding VAT exemption under Article 44 is key for self-employed professionals in Belgium, especially if you're in healthcare, education, social services, or the arts. By knowing whether you qualify, how to apply, and how to manage your status, you can simplify your accounting, save time, and ensure compliance.
If you're unsure whether you qualify for the VAT exemption under Article 44, we strongly recommend confirming this with a business counter, an accountant, or the FOD Finances. Since we don't handle VAT number setups internally, it's best to get professional advice there first.
đĄ Tip
Once you've confirmed you're exempt under Article 44, you're more than welcome to upgrade to GROW MAXâa plan tailored for VAT-exempt users. On top of everything included in the standard GROW plan, GROW MAX gives you:
Unlimited access to our AI Tax Advisor (instead of 50 questions/month)
An Extended Tax Guarantee of up to âŹ10,000 per filing
Direct access to Tax Coaches with on-demand 1-on-1 support
All the extra support you need to stay in control, feel confident about your taxes, and grow your business with peace of mind.
