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.
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