Belgian government reaches budget agreement: tax on parcels and more expensive drinks

The Belgian government has reached an agreement to fix its ailing budget. Some of the measures that affect retailers are a parcel tax of two euros and a change in VAT rates for certain product categories.

VAT increase for non-alcoholic beverages

The five parties that form the Belgian government have agreed to taking measures worth an estimated 9.2 billion euros by 2029. Some measures will have a direct impact on the retail sector.

One that stands out is a tax of two euros on small parcels from non-EU webshops, such as Shein or Temu. Local trade federations had been demanding such measures against unfair competition from these foreign players for some time. Earlier this month, the European Commission had already decided to levy customs duties on parcels worth less than 150 euros and to introduce a “handling fee” of two euros per parcel coming from outside the EU.

There are also some changes to VAT rates: takeaway meals and non-alcoholic beverages will now be subject to double the rate (12 % instead of 6 %). VAT on pesticides will increase to 21 %.