EU VAT System Overview
The European Union operates a harmonized VAT system across all 27 member states. While EU directives set minimum rates and general rules, each country maintains sovereignty over its exact VAT rates and certain exemptions.
🇪🇺 European Union
27 Member States | 447 Million People | Single Market
Key EU VAT Facts:
- Minimum Standard Rate: 15% (EU Directive 2006/112/EC)
- Maximum Standard Rate: No limit (Hungary currently highest at 27%)
- Minimum Reduced Rate: 5% (with exceptions)
- Average Standard Rate: 21.5% across EU
- Intra-EU Trade: 0% VAT with valid VAT numbers
EU Member States VAT Rates Comparison
Current VAT rates for all 27 EU countries (2025)
| Country | Standard Rate | Reduced Rates | Super-Reduced | Parking Rate |
|---|---|---|---|---|
| 🇦🇹 Austria | 20% | 10%, 13% | - | 13% |
| 🇧🇪 Belgium | 21% | 6%, 12% | - | 12% |
| 🇧🇬 Bulgaria | 20% | 9% | - | - |
| 🇭🇷 Croatia | 25% | 5%, 13% | - | - |
| 🇨🇾 Cyprus | 19% | 5%, 9% | - | - |
| 🇨🇿 Czech Republic | 21% | 10%, 15% | - | - |
| 🇩🇰 Denmark | 25% | - | - | - |
| 🇪🇪 Estonia | 22% | 9% | - | - |
| 🇫🇮 Finland | 24% | 10%, 14% | - | - |
| 🇫🇷 France | 20% | 5.5%, 10% | 2.1% | - |
| 🇩🇪 Germany | 19% | 7% | - | - |
| 🇬🇷 Greece | 24% | 6%, 13% | - | - |
| 🇭🇺 Hungary | 27% | 5%, 18% | - | - |
| 🇮🇪 Ireland | 23% | 9%, 13.5% | 4.8% | 13.5% |
| 🇮🇹 Italy | 22% | 4%, 5%, 10% | - | - |
| 🇱🇻 Latvia | 21% | 5%, 12% | - | - |
| 🇱🇹 Lithuania | 21% | 5%, 9% | - | - |
| 🇱🇺 Luxembourg | 17% | 3%, 8%, 14% | - | 14% |
| 🇲🇹 Malta | 18% | 5%, 7% | - | - |
| 🇳🇱 Netherlands | 21% | 9% | - | - |
| 🇵🇱 Poland | 23% | 5%, 8% | - | - |
| 🇵🇹 Portugal | 23% | 6%, 13% | - | 13% |
| 🇷🇴 Romania | 19% | 5%, 9% | - | - |
| 🇸🇰 Slovakia | 20% | 10% | - | - |
| 🇸🇮 Slovenia | 22% | 5%, 9.5% | - | - |
| 🇪🇸 Spain | 21% | 4%, 10% | - | - |
| 🇸🇪 Sweden | 25% | 6%, 12% | - | - |
Key EU VAT Directives & Regulations
Understanding EU-wide VAT rules and requirements
📋 VAT Directive 2006/112/EC
The primary EU legislation governing VAT, establishing:
- Minimum standard rate of 15%
- Minimum reduced rate of 5%
- List of goods/services eligible for reduced rates
- Rules for intra-community supplies
🛒 E-commerce VAT Rules (2021)
Major changes for online sellers:
- €10,000 EU-wide threshold for distance selling
- One-Stop Shop (OSS) for B2C sales
- Import One-Stop Shop (IOSS) for goods under €150
- Platform liability for facilitating sales
🏢 Reverse Charge Mechanism
For B2B transactions:
- 0% VAT on cross-border B2B supplies
- Customer accounts for VAT in their country
- Requires valid VAT numbers for both parties
- VIES reporting requirements
EU VAT System Timeline
Evolution of the European VAT framework
1967
First VAT Directive adopted
1977
Sixth VAT Directive - comprehensive framework
1993
Single Market - removal of fiscal frontiers
2006
VAT Directive 2006/112/EC - current framework
2015
Digital services VAT rules (MOSS)
2021
E-commerce package - OSS/IOSS implementation
2025
Ongoing: ViDA initiative for digital reporting
Quick Access to Member States
Click any country for detailed VAT information
EU VAT Frequently Asked Questions
What is the EU VAT number format?
Each EU country has its own VAT number format, typically starting with the country code (e.g., DE for Germany, FR for France) followed by 8-12 digits. You can verify EU VAT numbers through the VIES system.
How does intra-EU trade work?
When selling B2B between EU countries with valid VAT numbers, the supply is zero-rated. The buyer accounts for VAT through the reverse charge mechanism in their country.
What is the One-Stop Shop (OSS)?
OSS allows businesses to declare and pay VAT on all EU B2C distance sales through a single portal in one EU country, rather than registering in each member state.
Are VAT rates the same across the EU?
No, while the EU sets minimum rates (15% standard, 5% reduced), each country determines its own rates. They range from 17% (Luxembourg) to 27% (Hungary) for standard rates.
What is VIES?
VAT Information Exchange System (VIES) is the EU system for validating VAT numbers and reporting intra-community supplies. All B2B cross-border transactions must be reported.