Takeaway: Government doubles VAT on meals with shelf life of less than two days

Overnight Tuesday to Wednesday, the inner cabinet (kern) finally reached an agreement regarding the VAT increase on takeaway food. Meals with a shelf life exceeding two days from the date of preparation will be exempt from the hike.

© Bart De Wever / LinkedIn

A real mess. The decision by the De Wever government in late November to raise VAT on takeaway meals from 6% to 12% has created a complex puzzle. "The most difficult element is undoubtedly the discussion surrounding takeaway. Where does takeaway end?" conceded Jan Jambon in Het Laatste Nieuws last Saturday.

During the extended session of the year’s final inner cabinet meeting on Tuesday evening, policymakers nevertheless secured a deal. According to leaked details, the doubling of VAT on takeaway will indeed be based on the preparation date, specifically applying to items with a shelf life of less than two days. When contacted, the cabinets of the Finance, Economy, SME, and Prime Ministers declined to provide further comment on the modalities.

The government has clarified that this applies to both takeaway dishes sold in the hospitality sector and meals sold in supermarkets. The daily newspaper De Standaard had previously illustrated the anomaly earlier in the evening, noting: "Fresh sushi sold in supermarkets would therefore be taxed at 12%, while a pre-packaged pizza could remain at 6%."

According to draft legislation submitted by the government to the Federal Public Service Finance (FPS Finance), the tax shift affecting food consumption is expected to generate an additional €361.5 million in revenue. The FPS Finance estimates that the VAT reduction on non-alcoholic beverages will generate €139.7 million, while the original measure concerning takeaway food should theoretically bring in €221.8 million.

Aware of the uncertainties created by the measure in many sectors, the federal government had already decided to postpone its entry into force until March 1st. The other solution considered by Minister Jambon to minimize the risks is a frequently asked questions (FAQ) section. He has tasked the tax authorities with examining how this FAQ could be disseminated as quickly as possible, coinciding with the publication of the royal decree concerning the VAT adjustment.