VAT in Europe

VAT rates are different in each European country. Businesses operating in multiple jurisdictions must ensure that they charge and get charged the correct VAT rate to avoid penalties or long VAT refund mechanisms.

The VAT rates in the European Union are generally harmonized based on the EU VAT Directive, however, each Member State has some margin to define its own Fiscal Policy. They must only comply with the following two basic rules:

rule 1

To establish a standard VAT rate for all goods and services

rule 2

To introduce one of several reduced VAT rates for the supplies of certain goods and services specified in the VAT Directive.

The EU establishes the following considerations to the EU VAT rates policy

Standard VAT rate must not be below the 15%; there is no maximum VAT rate limit.

Member States may only introduce two different reduced VAT rates, which cannot be under 5%. Only specific goods and services included on the Annex III of the EU VAT Directive can be subject to reduced VAT rate.

Nevertheless, due to EU VAT Directive modification, Member States may introduce lower reduced VAT rates and 0% VAT rates for the Annex III products and services.

Finally, the list of goods and services from Annex III has been extended to include, among others, the sale of solar panels, electric supplies, and the sale of bicycles.

The following overview is non-exhaustive and must be checked with our tax professionals before implementing this information into your system.

VAT rates in Europe

Country

Standard VAT Rates

Reduced VAT Rates

Standard VAT Rates:

20%

Reduced VAT Rates:

0% and EU Exemption, 10%, 13%, 19%

Standard VAT Rates:

21%

Reduced VAT Rates:

0% and EU Exemption, 6%, 12%

Standard VAT Rates:

20%

Reduced VAT Rates:

0%, 9%

Standard VAT Rates:

25%

Reduced VAT Rates:

0% and EU Exemption, 5%, 13%

Standard VAT Rates:

19%

Reduced VAT Rates:

0% and EU Exemption, 3%, 5%, 9%

Standard VAT Rates:

21%

Reduced VAT Rates:

0% and EU Exemption and 12%

Standard VAT Rates:

25%

Reduced VAT Rates:

0% and EU Exemption

Standard VAT Rates:

Reduced VAT Rates:

Standard VAT Rates:

24%

Reduced VAT Rates:

0%, 9%, 5%

Standard VAT Rates:

25.5%

Reduced VAT Rates:

0% and EU Exemption, 10%, 13.5%

Standard VAT Rates:

20%

Reduced VAT Rates:

0% and EU Exemption, 2.1%, 5.5%, 10%

Standard VAT Rates:

19%

Reduced VAT Rates:

0% and EU Exemption, 7%

Standard VAT Rates:

24%

Reduced VAT Rates:

0% and EU Exemption, 6%, 13%

Standard VAT Rates:

27%

Reduced VAT Rates:

0% and EU Exemption, 5%, 18%

Standard VAT Rates:

Reduced VAT Rates:

Standard VAT Rates:

23%

Reduced VAT Rates:

0% and EU Exemption, 4.8%, 9%, 13.5%

Standard VAT Rates:

22%

Reduced VAT Rates:

0% and EU Exemption, 4%, 5%, 10%

Standard VAT Rates:

21%

Reduced VAT Rates:

0% and EU Exemption, 5%, 12%

Standard VAT Rates:

21%

Reduced VAT Rates:

0% and EU Exemption, 5%, 9%

Standard VAT Rates:

17%

Reduced VAT Rates:

0% and EU Exemption, 3%, 8%, 14%

Standard VAT Rates:

18%

Reduced VAT Rates:

0% and EU Exemption, 5%, 7%, 12%

Standard VAT Rates:

21%

Reduced VAT Rates:

0% and EU Exemption, 9%

Standard VAT Rates:

Reduced VAT Rates:

Standard VAT Rates:

23%

Reduced VAT Rates:

0% and EU Exemption, 5%, 8%

Standard VAT Rates:

23% - In Azores: 16% - In Madeira: 22%

Reduced VAT Rates:

0% and EU Exemption, 6%, 13% - In Azores: 4%, 9% - In Madeira: 4%,12%

Standard VAT Rates:

21%

Reduced VAT Rates:

0% and EU Exemption, 11%

Standard VAT Rates:

Reduced VAT Rates:

Standard VAT Rates:

23%

Reduced VAT Rates:

0% and EU Exemption, 5%, 19%

Standard VAT Rates:

22%

Reduced VAT Rates:

0% and EU Exemption, 5%, 9.5%

Standard VAT Rates:

21%

Reduced VAT Rates:

0% and EU Exemption, 4%, 10%

Standard VAT Rates:

25%

Reduced VAT Rates:

0% and EU Exemption, 6%, 12%

Standard VAT Rates:

Reduced VAT Rates:

Standard VAT Rates:

20%

Reduced VAT Rates:

0%, 5%

We will call you back

Give us your contact details and our team will contact you to organize a demo and evaluate how you can integrate your system with our tool.

Latest news

bulgaria view

E-Invoicing in Bulgaria: Complete Guide

Bulgaria plans to make structured e-invoicing mandatory for domestic transactions from 1 January 2028, with real-time NRA validation and pre-filled VAT returns. Learn who is affected and what changes.

paris view

France Abolishes the Simplified VAT Regime (RSI) from 1 January 2027

From 2027, French RSI businesses move to the normal VAT regime and file quarterly or monthly CA3 returns. Learn how the transition and e-reporting work.

european union flag

ViDA 2027: the VAT in the Digital Age changes taking effect on 1 January 2027

On 1 January 2027, a new phase of ViDA (Directive (EU) 2025/516) enters into force, with changes affecting the deemed supplier regime, the €10,000 threshold for SMEs, and the scope of the One Stop Shop (OSS).

Rome view

Annual VAT Returns in Italy: All You Need to Know (2026)

Your 2026 guide to Italy's annual VAT return: the recapitulative statement due by end of April the following year. Key rules, scope and more.

Belgium Transposes First Stage of the EU’s ViDA VAT Package

A new Belgian draft bill covers refinements to the existing B2C e-commerce VAT rules and a phase-out of the call-off stock simplification regime.

 windmills in the Netherlands

E-invoicing in The Netherlands: Complete Guide

Complete guide to e-invoicing in the Netherlands, covering B2G rules, Peppol, current B2B status and upcoming ViDA changes.

hungary city view

Hungary Reduces VAT on Prescription Medicines to 0%

Hungary has reduced the VAT rate on prescription-only medicines from 5% to 0%, effective 1 September 2026, following the publication of Act XL of 2026.

poland city view

E-Invoicing in Poland: Complete Guide to KSeF

Poland takes a step forward on e-invoicing introducing The National e-Invoicing System (KSeF) as a voluntary solution. The mandatory implementation was delayed to year 2026.

hungary city view

Hungary VAT Compliance: Key Changes 2026

Hungary VAT 2026 updates explained: new VAT, Ledgers and ESPL forms, detailed reclaimable VAT reporting and ÁNYK phase-out.

Rome view

Italy Clarifies VAT Deduction Rules: Deadlines, Invoices & Refunds

Italy extends VAT deduction deadlines, tightens invoice description standards, and confirms refund flexibility for non-resident businesses. What does this mean in practice?