From March 1, 2026, a new VAT rate of 12% applies to short-term furnished rentals. This concerns stays of less than three months that include at least one additional service, such as a physical welcome, household linen, or daily breakfast. This is important for anyone renting via Airbnb, other platforms, or directly to guests.
What changes in VAT rules?
The VAT rate rises from 6% to 12%, and the VAT obligation now applies to all furnished rentals shorter than three months that offer at least one of the extra services. Previously, some small landlords were exempt, but that exception has now been removed. The new rate is effective from March 1, 2026.
When do you need to charge VAT on rentals?
Your rental becomes VAT liable if you offer a furnished stay for less than three months and provide at least one of these services:
- Physical welcome: more than just handing over a key, for example a short tour or welcome drink. Key boxes or simply giving the keys do not count.
- Household linen: providing bed and bath linen. For stays longer than a week, the linen must be replaced at least once.
- Daily breakfast: offering breakfast to guests.
If none of these services are provided, the rental remains exempt from VAT.
When is there a physical welcome?
A physical welcome goes beyond giving the key. It includes greeting guests, giving a tour, or briefly explaining the accommodation. Simply handing over keys or using a key box does not count. In practice, it’s hard to monitor.
When is household linen considered provided?
Once bed and bath linen are made available, VAT applies. It doesn’t matter if beds are already made or if the linen is optional. For stays over a week, the linen must be replaced at least once. If not, the rental is exempt from VAT.
When do you need a business number?
If your rental is VAT liable, you need a business number. If your property is privately owned and you don’t provide extra services, a number is usually not required, even if you rent multiple properties. Only if the rental is clearly a professional activity generating income does this change.
You can also choose to get a business number, making you VAT liable and allowing you to reclaim VAT on expenses.
Why do you need to charge VAT?
VAT rules aim to level the playing field between private landlords and hotels. Being VAT liable also allows you to reclaim VAT on costs, ensuring your rental operates professionally and legally.
What do you need to do as a landlord?
To stay fully compliant:
1️⃣ Apply for a business number
You can do this yourself for free, or via registries like Acerta or Xerius for a fee. If your property is privately owned, registration at the Crossroads Bank for Enterprises (KBO) is usually not required. You’re not considered self-employed; only VAT reporting is needed.
2️⃣ Invoicing
Make sure invoices are professional and correct. Software like Dexxter makes this simple and reduces errors.
3️⃣ Submitting VAT returns
VAT returns are due quarterly. With good accounting software, this is quick because all invoices are tracked within the system. You’ll know exactly how much VAT to pay or reclaim.
