EU VAT rates

VAT Rates in the EU

Each country in the EU is responsible for determining its own VAT rates, even though VAT is collected throughout the EU. The table below shows the current rates, but it is important to check the latest rates with your country's tax authority.

Standard rate

Each EU country has a standard rate that applies to the majority of goods and services. It must not be below 15%.

Reduced Rate

One or two reduced rates can be applied to the supply of specific goods and services (based on the list in Annex III of the VAT Directive), but in most cases, this does not apply to electronically supplied services. The reduced rates mentioned here must be at least 5%.

Special Rates

Some EU countries are allowed to apply special VAT rates to certain supplies. These special rates apply to EU countries that adopted them on January 1, 1991.

They were initially introduced as a transitional measure to facilitate a smoother transition to EU VAT rules when the internal market came into effect on January 1, 1993, and the intention was to gradually phase them out.

There are three types of special rates:

• Highly reduced rate
• Zero rate
• Parking rate
  
  

Super Reduced Rate

Super reduced rates, below 5%, are applied to the sale of a limited list of goods and services in certain EU countries. This typically includes items such as food, safety equipment, baby supplies, etc.

Zero Rate

Zero rates are applied to certain sales in certain EU countries, including financial services and insurance. When a consumer is subject to a zero rate, they are not required to pay VAT, but they still have the right to deduct VAT on purchases directly related to the sale.

Parking Rate (or Intermediate Rate)

Some EU countries apply parking rates to certain supplies of goods and services that are not listed in Annex III of the VAT Directive. Countries can still apply reduced rates in these cases instead of the standard rate, as long as the rate is not below 12%.