Council of State highly critical of planned VAT reform for culture and takeaway meals

In a new advisory opinion, the Council of State is highly critical of the federal government's planned VAT reform. The government body has serious concerns about the different VAT rates in the cultural sector and for takeaway meals. The VAT reform is an important part of the budget agreement that was concluded at the end of last year.

When drawing up his multi-year budget in November, prime minister Bart De Wever had a general VAT increase in mind, but after opposition from the MR in particular, VAT would only be increased from 6 to 12 per cent for a limited number of products and services. From 1 March, VAT should increase on takeaway meals, sports and leisure activities.

However, the compromise receives a lot of criticism from the Council of State. In its opinion, the Council of State mainly criticised two measures.

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Firstly, the Council of State is critical of the VAT reform for the cultural sector. The government wants to make a distinction between “higher” culture (theatre, ballet, opera, classical music, circus), which will remain at 6 per cent, and other performances (concerts, dance shows, stand-up, festivals), which will go up to 12 per cent.

The Council of State says that there are no objective criteria for making this distinction and therefore considers it legally untenable. For example, it is not clear what exactly falls under ballet or classical music, it says. The advice is that the reform should be thoroughly reviewed.

The Council of State is also critical of the increase in VAT on certain takeaway meals from 6 to 12 per cent. It considers definitions such as “prepared”, “part of a meal” and “limited shelf life of up to 2 days” to be unclear, inconsistent and legally problematic. The Council warns of legal uncertainty for consumers, businesses and inspectors alike.

The office of finance minister Jan Jambon does not yet wish to comment on the substance of the matter. “We are currently studying the comments of the Council of State, including the technical aspects. The government will then consider what decisions need to be taken,” his office said.

^{Minister of finance Jan Jambon and Anders' Vincent Van Quickenborne © BELGA PHOTO NICOLAS MAETERLINCK}

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