Global VAT Compliance offers a brief overview of VAT rates across Europe in 2022. These VAT rates are updated frequently. Below you can find both standard VAT rates as well as reduced rates per country for all European countries.
Contact GVC for any aspect of your VAT compliance internationally. Our experts will be happy to provide a first assessment for your business.
Standard VAT Rates
Reduced VAT Rates
|VAT rate in Austria||The standard VAT rate is 20%.||10%, 13%|
|VAT rate Belgium||The standard VAT rate is 21%.||12%, 6%|
|VAT rate Bulgaria||The standard VAT rate is 20%.||9%|
|VAT rate Croatia||The standard VAT rate is 25%.||13%, 5%|
|VAT rate in Cyprus||The standard VAT rate is 19%.||5%, 9%, 0%|
|VAT rate in Czech Republic||The standard VAT rate is 21%.||15% , 10%, 0%|
|VAT rate in Denmark||The standard VAT rate is 25%.||There are certain services that are exempt from VAT such as health and social care; education; cultural activities and more.|
|VAT rate in Estonia||The standard VAT rate is 20%.||9%, 0%|
|VAT rate in Finland||The standard VAT rate is 24%||14%, 10%, 0%|
|VAT rate in France||The standard VAT rate is 20%.||5.5%, 10%, 8.5%, 2.1%, 1.05%, 0%|
|VAT rate in Germany||The standard VAT rate is 19%||7%, 0%|
|VAT rate in Greece||The standard VAT rate is 24%||13%, 17%, 6%|
|VAT rate in Hungary||The standard VAT rate is 27%.||5% , 18%|
|VAT rate in Ireland||The standard VAT rate is 23%.||13.5%, 4.8%, 9%, 0%|
|VAT rate in Italy||The standard VAT rate is 22%||4%, 5%, 10%, 0%|
|VAT rate in Latvia||The standard VAT rate is 21%.||12%, From January 1, 2018, to December 31, 2023, the VAT rate on certain fruits and vegetables as well as news and publications has been reduced from the standard rate (21%) to 5%.|
|VAT rate in Lithuania||The standard VAT rate is 21%.||9%, 5%|
|VAT rate in Luxembourg||The standard VAT rate is 17%||14%, 3%, 8%|
|VAT rate in Malta||The standard VAT rate is 18%.||5%, 7%, 0%|
|VAT rate in Monaco||The standard VAT rate is 20%.||5.5%, 10%, 2.1%|
|VAT rate in The Netherlands||The standard VAT rate is 21%||9%|
|VAT rate in Poland||The standard VAT rate is 23%.||8%, 5%, 0%|
|VAT rate in Portugal||The standard VAT rate is 23%||6%, 13%|
|VAT rate in Romania||The standard VAT rate is 19%.||9%, 5%|
|VAT rate in Slovakia||The standard VAT rate is 20%.||10%|
|VAT rate in Slovenia||The standard VAT rate is 22%.||9.5%, 5%|
|VAT rate in Spain||The standard VAT rate is 21%||10%, 4% (Canary Islands rate 7%)|
|VAT rate in Sweden||The standard VAT rate is 25%.||12%, 6%, 0%|
|VAT rate in the UK||The standard VAT rate is 20%.||5%|
VAT (Value Added Tax) is an indirect tax on goods and services throughout Europe and the rest of the world. The European Union has adopted VAT tax for all member states. The European Union does not collect any VAT tax but each member state is required to impose and collect VAT tax according to the EU VAT code.
Luxembourg has currently the lowest VAT rate with a VAT rate of 17%. Each EU member state decides on the percentage of VAT (Value added tax) tax on the of goods and services. This tax is meant to be applied on the added value that the specific business adds to the service or goods. Each state can decide on the VAT tax but EU law prohibits VAT to be set below 15% and at the same time one of the two reduced rates needs to be above 5%.
VAT rates are not the same throughout Europe as the standard VAT rates range from 17% to 27%. As mentioned before Luxembourg has the lowest VAT rate of 17% and Hungary has the highest VAT rate with 27%
VAT is also known in some countries as GST (Goods and services tax) and it is levied on the price of a product or service at each stage of the production distribution and sale.
The VAT collected is the difference between the VAT on the sales and the VAT on the purchase of the services or goods.
At the time the EU was created, the first six countries to join used different forms of indirect taxes. It was then evident that if the market was to be unified, a single form of indirect taxation should be used throughout.
Each country has also introduced reduced VAT rates in certain products, supplies or services such as food products, hospitality and medical equipment during the COVID19 pandemic. Especially during 2020 – 2022 many new temporary reduced rates where introduced to help businesses and individuals who were affected by COVID19. Get updated about all new changes in rates or country policies in regards to Covid19 in our VAT updates section by clicking here.
VAT (Value Added Tax) is also used internationally in countries such as Israel, Indonesia, Malaysia, Mexico etc. Should you wish to get information on Global VAT rates you can do so by visiting our page here.