EU VAT Rates

Across the EU each country has restricted control over their taxation which operates within the framework set by the EU VAT Directives. The rates at which taxation is charged against the classification of each product types is assigned by different compromises that are agreed by the finance minsters.

The EU VAT Directives are used by the EU to set the broad VAT rules, and sets the minimum standard VAT rate at 15%. Each member state are then otherwise free to set their own standard VAT rates. The EU VAT Directive also permits a maximum of two reduced rates, the lowest of which must be 5% or above - not include the allowance for a special rate (0%).

EU VAT directive basic rules

The VAT Directive sets the framework for the VAT rates in the EU, but it gives national governments freedom to set the number and level of rates they choose, subject only to 2 basic rules:

Rule 1: The standard rate for all goods and services
Rule 2: An EU country can opt to apply one or two reduced rates but only to goods or services listed in the VAT Directive

Standard VAT rate rules
Standard rate VAT is the rate at which EU countries have to apply to all non-exempt goods and services - these are covered under Article 96 of the VAT Directive. It must be no less than 15%, but there is no maximum.

Reduced rate VAT rules
Each EU country also have the option to apply one or two reduced rates - these are covered under Article 96 of the VAT Directive which:

May be applied to goods or services listed (in Annex III of the VAT Directive) but not to electronically supplied services (Article 98(2) VAT Directive)
Must be no less than 5% (Article 99 VAT Directive)

Exceptions to the rules (Special rate VAT)
The special rate VAT refers to the multiple exceptions to the basic rules. Largely for historical reasons and under certain conditions, many EU countries have been allowed to depart from these rules for a transitional period, with the objective to allow for the gradual alignment of national laws with the VAT Directive.

It allows EU countries to keep these special rates - reduced rates under 5% (including zero rates) and reduced rates for goods and services other than those listed in the directive (Articles 102-128 VAT Directive).

Note: The VAT rate applicable to the supply of goods also applies to the import and intra-EU acquisition of the same goods (Article 94 VAT Directive).

EU VAT rates by Country

Country	Standard %	Definition	Reduced 1 %	Relevant Definitions	Reduced 2 %	Relevant Definitions	Reduced 3 (Special Rate) %	Relevant Definitions	Zero (Special Rate) %	Relevant Definitions
Austria	20	All other taxable goods.	13	Some agricultural supplies, wine production, and flowers & decoration plants.	10	Pharmaceutical products, newspapers, printed books, and some agricultural supplies.	N/A		0	N/A
Belgium	21	All other taxable goods.	12	Some foods and certain agricultural supplies	6	Some food, soft drinks (including water), some pharmaceutical products, some disabled medical equipment, some books, some agricultural supplies, and flowers & decoration plants.	N/A		0	Newspapers.
Czechia	21	All other taxable goods.	15	TBC	10	TBC
Denmark	25	All other taxable goods.	N/A		N/A		N/A		0	Newspapers.
Estonia	20	All other taxable goods.	9	TBC
Finland	24	All other taxable goods.	14	Food, some agricultural supplies, and soft drinks.	10	Pharmaceutical products, books, and newspapers.	N/A		0	N/A
France	20	All other taxable goods.	10	Some food, some pharmaceutical products, some agricultural supplies, and flowers & decoration plants.	5.5	Some food, disabled medical equipment, and books.	2.1	Some pharmaceutical products and newspapers.	0	N/A
Germany	19	All other taxable goods.	7	Some food, disabled medical equipment, books, newspapers, medical and dental care, and flowers & decoration plants.	N/A		N/A		0	N/A
Greece	24	All other taxable goods.	13	TBC	6	TBC
Hungary	27	All other taxable goods.	18	TBC	5	TBC
Ireland	23	All other taxable goods.	13.5	Some food, children's car seats, some agricultural supplies, medical & dental care, and flowers & decoration plants.	9	Some food and newspapers.	4.8	Some agricultural supplies.	0	Books, some food, some pharmaceutical products, certain feminine hygiene products, and clothing & footwear for children.
Italy	22	All other taxable goods.	10	Some food, some pharmaceutical products, some agricultural supplies, and flowers & decoration plants.	5	N/A	4	Some food, disabled medical equipment, books, newspapers, and some agricultural supplies.	0	N/A
Latvia	21	All other taxable goods.	12	TBC	5	TBC
Lithuania	21	All other taxable goods.	9	TBC	5	TBC
Luxembourg	16	All other taxable goods.	13	Wine, and washing & cleaning products.	7	Flowers & decoration plants.	3	Food, soft drinks, children's clothing & footwear, some pharmaceutical products, some disabled medical equipment, books, newspapers, and agricultural supplies.	0	N/A
Netherlands	21	All other taxable goods.	9	Food, soft drinks, some pharmaceutical products, some disabled medical equipment, books, newspapers, agricultural supplies, and flowers & decoration plants.	N/A		N/A		0	N/A
Poland	23	All other taxable goods.	5	Some food, fruit juice, some books, and some agricultural supplies.	8	Some food, pharmaceutical products, disabled medical equipment, children's car seats, newspapers, some agricultural supplies, and flowers & decoration plants.	N/A		0	N/A
Portugal	23	All other taxable goods.	13	Some food, wine, and some agricultural supplies.	6	Some food, some pharmaceutical products, disabled medical equipment, books, newspapers. some agricultural supplies, some medical & dental care, and flowers & decoration plants.	N/A		0	N/A
Slovakia	20	All other taxable goods.	10	TBC
Romania	19	All other taxable goods.	9	TBC	5	TBC
Spain	21	All other taxable goods.	10	Some food, some pharmaceutical products;, some disabled medical equipment, agricultural supplies, some soft drinks, and glasses (eye) including frames.	4	Some food, some pharmaceutical products, some disabled medical equipment, books, and newspapers.	N/A		0	N/A
Sweden	25	All other taxable goods.	12	Some food.	6	Books and newspapers.	N/A		0	N/A
United Kingdom (no longer an EEA member)	20	All other taxable goods.	5	Children's car seats.	N/A		N/A		0	Books, food, some medical supplies, children's clothing & footwear, and seed supplies.