Medical care in Belgium to lose VAT exemption from 2022

At present, the care provided by a doctor, a dietician, a dentist or a physiotherapist in Belgium is generally exempt from VAT, but this will change from next year, under a recently adopted bill.

According to reports in L'Echo and De Tijd newspapers on Tuesday, the bill that will limit the VAT exemption on medical care received the green light from the finance committee on 23 June 23 and was voted in the Chamber on 1 July.

The central services of the tax administration must now, in consultation with the sector, draw up a circular containing more details on the care that will or will not be subject to VAT.

The VAT system applicable to paramedical professions is also changing. It is now linked to their recognition under Belgian law. Recognised paramedical professions, such as speech therapy and dietetics, are exempt from VAT, while unregulated professions, such as osteopathy, acupuncture and chiropractic treatments, must charge VAT.

FPS Finance, the department responsible for the finances of the Federal Government and taxation, expects to generate revenue of around €20 million from the change to VAT exemption, most of which should come from dentists. When mandatory VAT was introduced for cosmetic treatments in 2016, additional revenues of €90 million were expected.