In Belgium, there are four tax rates (VAT):
- 21% standard
- 12% for food served in restaurants
- 6% for basic goods
- 0% for example, for postal services
VAT paid on expenses by employees and reimbursed by the employer, cannot always be reclaimed by the Belgian tax authorities.
Typically, for entertainment expenses (restaurant expenses with a client for example), gifts, and laundry expenses, the VAT cannot be reclaimed. VAT on expenses related to a professional vehicle (leasing a car) can only be 50% reclaimed.
It happens frequently that multiple tax rates are applied on one receipt. In order to correctly book the VAT in the accounting, these expenses need to be split in Rydoo.
As of the fiscal year 2022, all expenses and any kind (including allowances) need to be reported on the annual salary document of your employees (fiche 281.10). The reporting is required even if the expenses are exempt from employee taxes. Please note that actual expenses reimbursed and allowances need to be totalled separately.
The value of a meal voucher (€6,91) needs to be deducted from a regular meal expense. If the employee pays the meal of colleagues who also receive meal vouchers, in principle, these colleagues should also deduct the value of the meal voucher (€6,91). But since they have no expense to deduct it from, this principle is very hard to realize.