Global VAT Compliance offers a brief overview of VAT rates across Europe in 2021. These rates are updated monthly. Below you can find both standard VAT rates as well as reduced rates per country for all European countries.
Standard VAT Rates
Reduced VAT Rates
|VAT rate in Austria||The standard VAT rate is 20%.||10% , 13% , 19%|
|VAT rate Belgium||The standard VAT rate is 21%.||12%, 6% From May 8, 2021, to September 30, 2021, the VAT rate on restaurant and catering services (including the delivery of certain alcoholic beverages) has been reduced to 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%|
|VAT rate in Czech Republic||The standard VAT rate is 21%.||15% , 10%|
|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%.|
|VAT rate in Finland||The standard VAT rate is 24%||14%, 10%|
|VAT rate in France||The standard VAT rate is 20%.||5.5%, 2.1% applies to major medicines, newspapers, and online news services|
|VAT rate in Germany||The standard VAT rate is 19%||7% Farmers benefit from a reduced rate of 5.5%|
|VAT rate in Greece||The standard VAT rate is 24%||13%|
|VAT rate in Hungary||The standard VAT rate is 27%.||5% , 12%, 7%, 18%|
|VAT rate in Ireland||The standard VAT rate is 23%.||13.5%, 4.8%, 9%|
|VAT rate in Italy||The standard VAT rate is 22%||4%, 5%, 10%|
|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 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%|
|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%|
|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%, 6%|
|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%|
|VAT rate in Sweden||The standard VAT rate is 25%.||12%, 6%|
|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. VAT is not the same throughout Europe as the standard VAT rates range from 17% to 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.
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%.
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 – 2021 many new temporary reduced rates where introduced to help businesses and individuals who were affected by COVID19
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.