What are the VAT rates in the EU
VAT, or value added tax, is an indirect tax that is levied on most products and services sold in the European Union. VAT rates applied in the EU vary from country to country, but are generally between 15 and 27%.
For 2024, several EU countries have announced changes to the EU VAT rates they apply. These changes are driven by a variety of factors, including the desire to simplify the VAT system, promote economic growth or support certain economic sectors.
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What are the EU VAT rates for 2024? The list of VAT rates in the EU
Country | Standard VAT rate | Reduced VAT rate 1 | Reduced VAT rate 2 | Super reduced VAT rate | Parking VAT rate |
|---|---|---|---|---|---|
Germany | 19% | 7% | – | – | – |
Austria | 20% | 10% | 13% | – | 13% |
Belgium | 21% | 6% | 12% | – | 12% |
Bulgaria | 20% | 9% | – | – | – |
Cyprus | 19% | 5% | 9% | – | – |
Croatia | 25% | 5% | 13% | – | – |
Denmark | 25% | – | – | – | – |
Spain | 21% | 10% | – | 4% | – |
Estonia | 22% | 9% | – | – | – |
Finland | 24% | 10% | 14% | – | – |
France | 20% | 5,5% | 10% | 2,1% | – |
Greece | 24% | 6% | 13% | – | – |
Hungary | 27% | 5% | 18% | – | – |
Ireland | 23% | 9% | 13,5% | 4,80% | 13,5% |
Northern Ireland | 20% | 5% | – | – | – |
Norway | 25% | 15% | 12% | – | – |
Italy | 22% | 10% | 5% | 4% | – |
Latvia | 21% | 12% | 5% | – | – |
Lithuania | 21% | 5% | 9% | – | – |
Luxembourg | 17% | 8% | 14% | 3% | 12% |
Malta | 18% | 5% | 7% | – | – |
Netherlands | 21% | 9% | – | – | – |
Poland | 23% | 5% | 8% | – | – |
Portugal | 23% | 6% | 13% | – | 13% |
République Tchèque | 21% | 12% | – | – | – |
Romania | 19% | 5% | 9% | – | – |
United Kingdom | 20% | 5% | – | – | – |
Slovakia | 20% | 10% | – | – | – |
Slovenia | 22% | 9,5% | 5% | – | – |
Sweden | 25% | 6% | 12% | – | – |
Switzerland | 8.1% | 2.6% | 3.8% | – | – |
Simplify the management of your European VAT with the expertise of our tax specialists. Make an appointment today to secure your international development.
What are the EU VAT rate changes for 2024?
2024 VAT rates in Switzerland
- The standard Swiss VAT rate increases from 7.7% to 8.1%
- The reduced VAT rate 1 Swiss goes from 2.5% to 2.6%
- The reduced VAT rate 2 in Switzerland goes from 3.7% to 3.8%
VAT rates 2024 in Czech Republic
The change in VAT rates in the Czech Republic takes place on reduced rates. From January 1, 2024, the Czech Republic removes its two reduced rates of 10% and 15% and replaces them with a single reduced rate of 12%.
VAT rate change in Estonia for 2024
Estonia increased its normal VAT rate in 2024. This will increase from 20% to 22% from January 1, 2024.
Luxembourg VAT rate 2024
To combat the economic slowdown due to the COVID crisis, and limit inflation, Luxembourg decided to reduce its VAT rates in 2023 by 1 point. For 2024, this system stops and the 2024 VAT rates in Luxembourg will regain the point lost in 2023. The VAT rates will be as follows:
- The normal VAT rate will increase from 16 to 17%
- Reduced 1 will increase from 7% to 8%
- The reduced VAT rate 2 will increase from 13% to 14%
When to apply VAT rates in the EU?
VAT compliance is an important obligation for companies operating in the European Union in B2B and B2C. It can be complex, but it is important to understand the fundamental principles to avoid penalties and optimize the company’s taxation.
For e-commerce sales and sales on MarketPlaces
If the e-commerce seller makes more than €10,000 in distance sales (overall threshold in all EU countries), then the seller must apply the VAT rate of the country of delivery.
Here is a concrete example:
- A French e-retailer sells a pair of shoes for €100 to a German customer.
- The applicable VAT in Germany is 19%.
- The e-merchant will therefore have to invoice €119 to its German customer, including €19 in VAT.
- He will then have to remit this €19 VAT to the German tax administration via the OSS or IOSS Single Window.
For what ? :
EU VAT rules require that businesses selling goods to customers in another EU country must charge the VAT rate applicable in that country.
However, companies whose turnover outside their country of establishment is less than €10,000 must apply the VAT of their country of establishment.
What to do if turnover exceeds the threshold?
If the turnover outside France of a French e-retailer exceeds €10,000 over one year, it must:
- Apply the VAT rate applicable in the country of delivery of its goods or services.
- Register at the Unique OSS/IOSS counter
- Remit the VAT collected via the OSS or IOSS Single Window.
Apply the VAT rate of another EU country on a local sale
A local sale is considered when the merchandise is sold in the country where it is stored. In the case of local sales, you must apply the 2024 VAT rate of the country in which you are making the sale.
Let’s take an example :
A French company stores its shoes in Germany and resells them to individuals in Germany. The shoes do not leave Germany, so it is considered a local sale. The obligations of the French company are:
- Obtain a VAT number in Germany: The French company must obtain a VAT number in Germany to be able to invoice VAT to its German customers.
- Apply the current German VAT rate for its shoes: The French company must apply the current German VAT rate for shoes, which is 19%.
- File VAT returns in Germany and remit the VAT to the German tax authorities: The French company must file VAT returns in Germany every month or quarter, depending on the rules applicable in Germany. It must also remit the VAT collected to the German tax authorities.
Did you know that the name of value added tax in Germany is Umsatzsteuer? To find out more about VAT in Germany, I invite you to read our VAT Guide in Germany.
Find EU VAT rates for 2021, 2022 and 2023
EU VAT rates for 2023
Country | Standard VAT rate | Reduced VAT rate 1 | Reduced VAT rate 2 | Super reduced VAT rate | Parking rate |
|---|---|---|---|---|---|
Germany | 19% | 7% | – | – | – |
Austria | 20% | 10% | 13% | – | 13% |
Belgium | 21% | 6% | 12% | – | 12% |
Bulgaria | 20% | 9% | – | – | – |
Cyprus | 19% | 5% | 9% | – | – |
Croatia | 25% | 5% | 13% | – | – |
Denmark | 25% | – | – | – | – |
Spain | 21% | 10% | – | 4% | – |
Estonia | 20% | 9% | – | – | – |
Finland | 24% | 10% | 14% | – | – |
France | 20% | 5,5% | 10% | 2,1% | – |
Greece | 24% | 6% | 13% | – | – |
Hungary | 27% | 5% | 18% | – | – |
Ireland | 23% | 9% | 13,5% | 4,80% | 13,5% |
Northern Ireland | 20% | 5% | – | – | – |
Italy | 22% | 10% | 5% | 4% | – |
Latvia | 21% | 12% | 5% | – | – |
Lithuania | 21% | 5% | 9% | – | – |
Luxembourg | 16% | 7% | 13% | 3% | 12% |
Malta | 18% | 5% | 7% | – | – |
Netherlands | 21% | 9% | – | – | – |
Poland | 23% | 5% | 8% | – | – |
Portugal | 23% | 6% | 13% | – | 13% |
Czech Republic | 21% | 15% | 10% | – | – |
Romania | 19% | 5% | 9% | – | – |
United Kingdom | 20% | 5% | – | – | – |
Slovakia | 20% | 10% | – | – | – |
Slovenia | 22% | 9,5% | 5% | – | – |
Sweden | 25% | 6% | 12% | – | – |
Switzerland | 7.7% | 2.5% | 3.7% | – | – |
EU VAT rates for 2022
Country | Standard Rate | Reduced rate 1 | Reduced rate 2 | Super-Reduced rate | Parking Rate |
|---|---|---|---|---|---|
Germany | 19% | 7% | – | – | – |
Austria | 20% | 10% | 13% | – | 13% |
Belgium | 21% | 6% | 12% | – | 12% |
Bulgaria | 20% | 9% | – | – | – |
Cyprus | 19% | 5% | 9% | – | – |
Croatia | 25% | 5% | 13% | – | – |
Danmark | 25% | – | – | – | – |
Spain | 21% | 10% | – | 4% | – |
Estonia | 20% | 9% | – | – | – |
Finland | 24% | 10% | 14% | – | – |
France | 20% | 5,5% | 10% | 2,1% | – |
Greece | 24% | 6% | 13% | – | – |
Hungary | 27% | 5% | 18% | – | – |
Ireland | 23% | 9% | 13,5% | 4,80% | 13,5% |
North Ireland | 20% | 5% | – | – | – |
Italy | 22% | 10% | 5% | 4% | – |
Latvia | 21% | 12% | 5% | – | – |
Lithuania | 21% | 5% | 9% | – | – |
Luxembourg | 17% | 8% | 14% | 3% | 12% |
Malta | 18% | 5% | 7% | – | – |
Netherlands | 21% | 9% | – | – | – |
Poland | 23% | 5% | 8% | – | – |
Portugal | 23% | 6% | 13% | – | 13% |
Czech Republic | 21% | 15% | 10% | – | – |
Roumania | 19% | 5% | 9% | – | – |
United Kingdom | 20% | 5% | – | – | – |
Slovakia | 20% | 10% | – | – | – |
Slovenia | 22% | 9,5% | 5% | – | – |
Sweden | 25% | 6% | 12% | – | – |
Switzerland | 7.7% | 2.5% | 3.7% | – | – |
VAT rates in the EU in 2021
| List of VAT Rates Applied in EU Member States (last updated: January 1, 2021) | |||||
| Member State | Country Code | Standard Rate | Reduced Rate | Super-Reduced Rate | Parking Rate |
| Austria | AT | 20 | 10 / 13 | – | 13 |
| Belgium | BE | 21 | 6 / 12 | – | 12 |
| Bulgaria | BG | 20 | 9 | – | – |
| Cyprus | CY | 19 | 5 / 9 | – | – |
| Czech Republic | CZ | 21 | 10 / 15 | – | – |
| Germany | DE | 19 | 7 | – | – |
| Denmark | DK | 25 | – | – | – |
| Estonia | EE | 20 | 9 | – | – |
| Greece | EL | 24 | 6 / 13 | – | – |
| Spain | ES | 21 | 10 | 4 | – |
| Finland | FI | 24 | 10 / 14 | – | – |
| France | FR | 20 | 5,5 / 10 | 2,1 | – |
| Croatia | HR | 25 | 5 / 13 | – | – |
| Hungary | HU | 27 | 5 / 18 | – | – |
| Ireland | IE | 23 | 9 / 13,5 | 4,8 | 13,5 |
| Italy | IT | 22 | 5 / 10 | 4 | – |
| Lithuania | LT | 21 | 5 / 9 | – | – |
| Luxembourg | LU | 17 | 8 | 3 | 14 |
| Latvia | LV | 21 | 12 / 5 | – | – |
| Malta | MT | 18 | 5 / 7 | – | – |
| Netherlands | NL | 21 | 9 | – | – |
| Poland | PL | 23 | 5 / 8 | – | – |
| Portugal | PT | 23 | 6 / 13 | – | 13 |
| Roumania | RO | 19 | 5 / 9 | – | – |
| Sweden | SE | 25 | 6 / 12 | – | – |
| Slovenia | SI | 22 | 9,5 | – | – |
| Slovakia | SK | 20 | 10 | – | – |
Definition of standard, reduced and parking VAT rates
Member States have freedom in setting their VAT rates. However, the VAT directive legally regulates these rates in Europe, notably with minimum thresholds.
The standard or normal VAT rate
This is the rate applied to the vast majority of products and services. This rate must be at least 15%, with no maximum value.
The reduced VAT rate
The European Union allows member states to apply up to two reduced VAT rates. They are only applicable to goods and services listed in Annex III of the VAT Directive. These reduced VAT rates cannot fall below 5%.
The super reduced VAT rate
This VAT rate is only used on very few products and services. For example, in France, the super-reduced VAT rate of 2.1% is only applicable on certain medicines or on the audiovisual royalty.
The parking VAT rate
Some Member States apply “parking” rates for certain goods and services which are not included in Annex III of the VAT Directive. These countries can apply these “parking”, or intermediate, rates, provided they are not lower than 12%.
Simplify the management of your European VAT with the expertise of our tax specialists. Make an appointment today to secure your international development.
Business developer at Eurofiscalis, my goal is to simplify and popularize VAT rules for e-traders and companies exporting internationally. I know how complex and tedious it can be, and I am convinced that my experience and knowledge can help companies understand and comply with the current tax regulations.
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