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Freelancers and consultants

Invoicing under the small-business VAT exemption

If annual turnover stays below €25,000 excluding VAT, you can choose the small-business exemption under Article 56bis of Belgium’s VAT Code, subject to eligibility. You charge no VAT and submit no periodic VAT returns, but invoice requirements still apply.

How does the exemption work?

You invoice without VAT and do not submit periodic returns, but cannot recover VAT on your own purchases. This can suit consultants or coaches with few expenses, especially when serving private customers. Every invoice must state ‘Special exemption scheme for small businesses’, without a VAT rate or VAT amount. Referring to Article 56bis is optional.

The annual threshold is €25,000 excluding VAT. Under the stated timetable, it rises gradually from 2027 to €30,000 in 2031. Certain activities are excluded, including work on immovable property such as construction and renovation, sales of new buildings and trade in tobacco products. Check eligibility with your accountant. Although periodic VAT returns are not required, quarterly turnover reporting and an annual customer listing are provided for.

In ProFactuur

How to do it, step by step

  1. 1

    Set the exemption scheme

    Choose the small-business VAT exemption in your business settings. New invoices automatically use it.

  2. 2

    Add the statement automatically

    ProFactuur inserts ‘Special exemption scheme for small businesses’ in the document language and keeps all lines VAT-free. This is checked when saving.

  3. 3

    Track turnover against the threshold

    In Reports, the VAT tab shows a bar comparing calendar-year turnover with €25,000. A dashboard card appears as you approach the threshold.

  4. 4

    Switch in time

    When you need the normal VAT scheme, update your business’s VAT setting. New invoices then include VAT; existing invoices remain unchanged.

Example

Example: coach using the exemption

A career coach in a secondary occupation invoices a private customer for a programme. Her turnover this year is already €18,400.00.

Coaching programme, 6 sessions at €85.00€510.00
Personality test and report, 1 fixed fee€90.00
Total€600.00
VATnot applicable
Total payable€600.00

After this invoice, turnover is €19,000.00. The bar in Reports shows €6,000.00 remaining before the threshold.

What if you exceed the threshold?

If you exceed it by no more than 10%, up to €27,500, the exemption continues until 31 December. The normal scheme starts on 1 January; notify the change before 15 December using e604B. If you exceed it by more than 10%, the exemption ends immediately from the transaction causing the excess. Charge VAT from that invoice and notify the change immediately. Discuss this with your accountant before reaching the threshold.

At an unchanged net price, a private customer previously paying €600.00 will pay €726.00 with 21% VAT. The impact is usually smaller for businesses entitled to deduct VAT. Belgian B2B transactions within the e-invoicing requirement already require structured invoices under the exemption and continue to do so afterwards. A paid ProFactuur plan lets you send them through Peppol without another app.

Frequently asked questions

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