"De kleurrijke boom staat in België."
Translation:The colorful tree is in Belgium.
It's referring to a tree, which generally stand upright (and assumingly is since it's colorful)
It is technically possible if the tree is lying down, with the roots above the ground, and everything. But oherwise, a tree is always standing.
Not all locations use 'liggen'. It does work for countries, cities, and rivers, but not for tree and houses for example. They both use "staan". (And as you can see, they are not really geographical locations either).