Starting from March 1, 2026, the VAT rate applicable to hotel stays, short-term furnished rentals "LCD" (less than three months) and camping sites in Belgium will increase from 6% to 12%.
As of February 23, 2026, a royal decree was published. Before this publication, only a FAQ from the VAT administration detailing the practical aspects of this reform had been published. This situation raises significant legal questions, especially since the legislation section of the Council of State issued a negative opinion on an earlier version of the text.
This royal decree imposes a significant VAT change in the hotel and LCD sectors that we will examine below.
A harmonization of the rate to 12%.
The reform provides for a harmonization of the VAT rate to 12% for the provision of a hotel room, any form of short-term furnished accommodation ("LCD") of less than three months, and the provision of a camping site.
The 12% rate will likely also apply to ancillary services related to accommodation (laundry or ironing services, Wi-Fi, parking, sauna, movie rentals, pay television), the royal decree is silent on this point and leaves it to the Minister of Finance (Jan Jambon) to implement the text through a ministerial decree.
A time-limited transitional measure?
The FAQ from the administration provided for a transitional provision maintaining the 6% rate for reservations:
- made no later than February 28, 2026,
- provided that the VAT is due no later than June 30, 2026.
In practice, this means that the transitional measure concerns reservations:
- concluded before March 1, 2026 ;
- and paid before June 1, 2026.
The hotelier must be able to prove the reservation date (e.g., via a confirmation email or the payment of a deposit).
However, the royal decree published on February 23 does not provide for any transitional measures. We remain vigilant and eagerly await the ministerial execution decree which we hope will meet the sector's expectations.
In any case, the initially planned timeframe for the transitional measure is particularly short and will pose significant operational and contractual difficulties for the sector.
Major operational consequences
This reform is not limited to a simple price adjustment. It involves updating ERP systems, adapting booking platforms, modifying websites and pricing communication tools, adjusting billing processes, and potentially revising general terms and conditions.
The issue of cancellation and no-show fees will also need to be analyzed.
A weakened legal certainty
The absence of published regulatory text, combined with the context of an initial negative opinion from the Council of State, raises questions regarding:
- compliance with the principle of legal certainty ;
- the protection of the legitimate trust of consumers as well as economic operators ;
- the compatibility of the reform with the requirements of the Economic Law Code, which mandates the communication of a clear, precise, and determined price to the consumer.
A rapid entry into force raises questions about the sufficiency of transitional measures and the respect for the text of fundamental legal principles (principle of legal certainty and non-retroactivity). It should also be noted that the transitional measure, not being part of the text submitted to the Council of State, has not been analyzed by it.
A cancellation procedure before the Council of State could be considered by industry stakeholders.
Our firm supports hoteliers, operators of furnished rentals (LCD), and campsite managers in analyzing the fiscal, contractual, and litigation impact of this reform and is ready.