Enjoy as a self-employed person the reduced 6% VAT rate for electricity and gas

When a business number is provided, but the electricity or gas consumed is mainly intended for private use, it is still possible to benefit from the 6% rate.

Who is this interesting for?

• You are self-employed in the form of a sole proprietorship
• Or you are the director of a company
• And you use part of your home for professional purposes

In this case, the energy costs for the professional spaces are deductible as professional expenses in personal income tax or corporate tax, and the VAT on this part is deductible when preparing the VAT return.

Most of the time, there will be no separate meter available for the professional spaces, which means an estimate is made of the professional part of the energy costs, for example based on surfaces or estimates of consumption. If the professional use is less than half, it is mainly private use, and it is possible to benefit from the 6% VAT rate. This is interesting because the VAT is only deductible pro-rata.

Two examples for clarification

A first entrepreneur has a monthly energy bill of 200.00 euros excluding VAT. Based on the surfaces, it is determined that the office and storage space represent 20% of the house, which means that 20% of the VAT on energy costs is deductible. In this example, the entrepreneur will pay 288.00 euros less in VAT.

Invoice amount excluding VAT: 2.400,00 euro
21% VAT: 100,80 euro deductible, 403,20 euro non deductible
6% VAT: 28,80 euro deductible, 115,20 euro non deductible

A second entrepreneur is a doctor and exempt from VAT. He also has a monthly energy bill of 200.00 euros excluding VAT and the energy costs concern less than half of the doctor’s practice. In this example, the entrepreneur will pay 360.00 euros less in VAT.

Invoice amount excluding VAT: 2.400,00 euro
21% VAT: 0,00 euro deductible, 504,00 euro non deductible
6% VAT: 0,00 euro deductible, 144,00 euro non deductible

What is expected of you?

If you wish to take advantage of this possibility, you must inform your energy supplier. It must then be declared in writing that the contract was concluded mainly for non-business use.

For this purpose, the legislator has provided a standard text that can be used:
“This contract is concluded with a view to the supply of gas used as heating fuel/electricity mainly for non-business use within the meaning of Article 420, § 5, of the program law of December 27, 2004.”

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This article was written by Bert Sleurs, senior adviser at PKF BOFIDI.