A few cents of VAT mask the real inequalities

OPINION - After months of dithering, the federal government has finally produced a budget. The flagship measure, the VAT increase on takeaway food, is worrying hospitality federations. But behind this debate lies a much broader issue: a coherent and fair tax system for all small businesses.

Belgium awoke on Monday to the announcement of a long-awaited budget agreement, reached after months of negotiations. While unions are calling for a general strike, this agreement was deemed necessary to put public finances back on a sustainable path. However, some measures are already raising concerns, particularly in the hospitality sector.

The task was far from straightforward. The new federal government inherited a high structural deficit and a public debt that continues to grow. To meet European requirements and restore the country's fiscal credibility, the executive branch pledged to strictly contain spending growth and broaden the tax base.

What about our foodservice market?

Among the measures announced, the increase in the VAT rate on takeaway sales, from 6% to 12%, is attracting the most attention from the hospitality sector. To understand its impact, it's important to remember the role that takeaway and delivery have played in the restaurant economy. This segment now represents nearly €500 million in Belgium. It experienced rapid growth between 2019 and 2023, driven by the health crisis: for many establishments, it constituted an essential, sometimes vital, source of additional income at a time when dine-in business was severely restricted.

Since 2023, however, this momentum has slowed considerably, particularly in the delivery sector. This isn't due to market maturity, but rather a loss of competitiveness: high inflation, significant operating costs, and an overly expensive delivery business model. As a result, Belgium accounts for only 1% of sales in the Food & Beverage market as takeaway or delivery, compared to 5% in France and the Netherlands, and up to 10% in the United Kingdom.

As is often the case in foodservice, however, it is essential to add nuance: takeaway remains an important lever for establishments that have been able to integrate it coherently, combining operational efficiency and quality customer experience.

In this context, taxing takeaway more heavily may seem counterintuitive, even unfair. But two points deserve consideration.

From the outset, restaurants with table service already apply the 12% rate. Aligning takeaway establishments therefore corrects an inconsistency. A traditional brasserie, with high staffing costs and a structural labor shortage, found itself at a disadvantage compared to smaller, takeaway-oriented models. As economist Étienne de Callataÿ recently reminded us in an interview with Gondola Foodservice , tax fairness is essential for a functioning market: taxation must reflect economic reality.

In absolute terms, the actual impact of the VAT increase is limited. Take, for example, a well-known chip shop in Brussels: two burgers, two drinks, and a Coke cost €27 on the menu, or €28.50 after the increase. An unpleasant increase, certainly, but a manageable one. A €1.50 surcharge remains less than the additional tax that the same consumer will now have to pay on parcels from Asia.

The real difference lies elsewhere: €41.50 for the same meal delivered to your home. The €13 difference is explained by the platforms' commissions (20 to 30%) and the delivery cost (around €4.50). A huge difference, even for consumers who aren't particularly price-sensitive.

While specific aid to the hospitality sector may not constitute a sustainable strategy, tax reform must put the competitiveness of our businesses and entrepreneurs back at the heart of the discussion. And certainly, the competitiveness of the hospitality sector, which structures local economic life and local employment, must also be addressed.

The fundamental error lies in treating economic segments by industry (hospitality, retail) when fair trade requires economic weighting: one small shopkeeper or SME is no different from another, whether in hospitality, manufacturing, or large-scale distribution. All small businesses in Belgium need support; they are not so small, as they represent 57% of salaried jobs.