Federal budget deal introduces higher taxes on air travel, overseas parcels and accommodation
After months of negotiations, the federal government finally reached a budget agreement on Monday. The consequences extend beyond Belgium’s borders, as hotel stays, parcels from abroad and air travel face higher charges.
There will be no general VAT increase, but there will be targeted rises on specific goods and services, the government confirmed.
VAT on hotel accommodation will rise from 6 per cent to 12 per cent. According to the Brussels Hotels Association (BHA), this will put pressure on the competitiveness of Brussels hotels in the international market.
“We argued for 9 per cent instead of 12,” a spokesperson reacted. “We often work with long-term contracts; without a transition period, this measure will harm the sector.”
BHA also warns that the hotel sector will be placed at a disadvantage compared with domestic tourist rental platforms such as Airbnb. “It is paradoxical that the traditional sector, which creates employment, is subjected to a higher VAT rate, while ‘informal’ and sometimes illegal competitors continue to benefit from a lower tax burden,” the association says.
VAT on camping accommodation will likewise rise from 6 to 12 per cent. The same applies to sports subscriptions, entertainment such as cinema tickets, and takeaway food. Ordering parcels from non-European online retailers such as Shein, AliExpress and Temu will also become more expensive due to the new 2 euro parcel tax.
The cost of air travel will also increase. The tax on short-haul flights will double from 5 to 10 euros per seat in 2027. Brussels Airlines has criticised the move, saying that the government is "going against the trend". "Italy and Germany have reduced their flight taxes, and Sweden has abolished its own," said spokesperson Nico Cardone.
He added that Brussels Airlines can't absorb the extra cost itself and will have to pass it on to passengers. The airline also reiterated its call for efficient, high-speed rail links to Brussels Airport, which could replace short-haul flights like those from Paris.
© BELGA PHOTO HATIM KAGHAT
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