[Green Circle Talks About Cross-Border] Vat Tax Rates in EU Countries

VAT rates in EU countries

The European Union (EU) is a political and economic union of European countries that promotes cooperation and common interests among member states. The member states of the EU have their own independent tax policies, including Value-Added Tax (VAT). VAT is a consumption tax, which is levied on the increase in the value of a product or service. Different EU member states have set different VAT rates. Below is a brief description of some of the VAT rates in the EU.

Austria, a member of the European Union, imposes a VAT of 20% on most goods and services. This includes food, clothing, electronics, and more. However, Austria applies a lower VAT rate of 10% or 13% on specific areas such as culture and healthcare.

Belgium has an overall higher VAT rate, generally 21%, but a lower VAT rate of 6% on some basic necessities such as food and books.

Bulgaria's VAT rate is 20%, similar to Austria's. Croatia's VAT rate is slightly lower at 25%. Croatia has a slightly lower VAT rate of 251 TP3T, while Cyprus, on the other hand, has a VAT rate of 191 TP3T.

The Czech Republic has a VAT rate of 21%, Denmark has a VAT rate of 25% and Estonia has a VAT rate of 20%.

Both Finland and France have a VAT rate of 20%, but for specific items such as food and catering services, Finland applies a VAT rate of 13%, while France applies a VAT rate of 10%.

Germany, one of the largest economies in the EU, has a VAT rate of 191 TP3T, Greece has a VAT rate of 241 TP3T, and Hungary has a VAT rate of 271 TP3T.

The VAT rates for Ireland and Italy are both 23%. The VAT rates for Latvia and Lithuania are both 21%.

Luxembourg has one of the lowest VAT rates in the EU at 171 TP3T, while Malta has a VAT rate of 181 TP3T.

The VAT rate is 21% in the Netherlands, 23% in Poland, 23% in Portugal and 19% in Romania.

The VAT rate is 20% in Slovakia, 22% in Slovenia and 21% in Spain.

Sweden (Sweden) has a VAT rate of 25%, while the United Kingdom (UK) has a post-Brexit VAT rate of 20%.

Overall, there are certain differences in the VAT rates across the EU, which cover a wide range of areas and which need to be fully understood in order to ensure that tax is paid legally in cross-border transactions and business activities.