VAT Country Facts

 

 

VAT Rates in Europe

 

This article gives a short overview of the VAT rates across European countries.

 

In accordance to the principle of the free market,  the European Union value added tax (or EU VAT) is a value added tax on goods and services within the European Union (EU). The EU's institutions do not collect the tax, but each member state is responsible to adopt a value added tax that complies with the EU VAT code. The EU has set the minimum standard VAT rate at 15%. Different rates of VAT apply in different EU member states, ranging from 17% in Luxembourg to 27% in Hungary. The total VAT collected by member states is used as part of the calculation to determine what each state contributes to the EU's budget.

 

According to VatGlobal, specific articles of the main EU VAT directive dictate that EU member states must apply a standard rate of VAT within a particular range, also having the option of applying a reduced VAT rate no lower that 5%. However, several member states have implemented certain derogations from the directive which allow for a lower percentage.

 

 

In addition, the EU VAT directive comprises criteria regarding the nature of the goods and services to which the reduced rate may be applied. As a consequence, the member states apply the reduced VAT rate to the same types of products which circulate on the free market.

Moreover, in order to be in accordance with the reduced or standard VAT rates, member states may occasionally reclassify goods.

 

In the table below, the standard and the respective reduced VAT rates are shown for each member state.

 

Country

VAT standard rates

VAT reduced rates

Austria

20%

10% 13%

Belgium

21%

6% 12%

Bulgaria

20%

9%

Cyprus

19%

5% 9%

Czech Republic

21%

10% 15%

Germany

19%

7%

Denmark

25%

N/A

Estonia

20%

9%

Greece

24%

6% 13%

Spain

21%

4% 10%

Finland

24%

10% 14%

France

20%

5% 10%

Croatia

25%

5% 13%

Hungary

27%

5% 18%

Ireland

23%

4.8% 9% 13.5%

Italy

22%

4% 5% 10%

Lithuania

21%

5% 9%

Luxembourg

17%

3% 8% 14%

Latvia

21%

12%

Malta

18%

5% 7%

Netherlands

21%

6%

Poland

23%

5% 8%

Portugal

23%

6% 13%

Romania

19%

5% 9%

Sweden

25%

6% 12%

Slovenia

22%

9.5%

Slovakia

20%

10%

UK

20%

0% 5%

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