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GrokKey points to remember:
- In 2026, VAT rates continue to vary across Europe. Several countries, including Estonia, Finland, Lithuania and Slovakia, have changed their rates compared with those applicable in 2025.
- Within the European Union, Luxembourg retains the lowest standard VAT rate at 17%, while Hungary maintains the highest rate at 27%.
- In 2026, the average VAT rate in the European Union stands at approximately 21.82%.
- A thorough understanding of these rates is essential for international companies seeking to protect their margins, adjust their selling prices and avoid tax penalties related to cross-border transactions.
Value added tax (VAT) is one of the main indirect taxes applied to consumption. Its amount is included in the price paid by the final consumer when purchasing a good or service, with the company acting as a VAT collector on behalf of the tax authorities.
The applicable VAT rate is not uniform. It depends on several factors, including the nature of the goods or services, the company’s tax regime and the transaction amount. These factors directly determine the tax applied to each business transaction.
In the Member States of the European Union, as well as in Switzerland and the United Kingdom, tax authorities apply different levels of taxation. Generally, a standard VAT rate applies, with one or more reduced rates or super-reduced rates potentially applying to certain goods and services. These rates vary depending on the country and its national tax policies.
In 2026, VAT in Europe remains a central component of the European tax system. Each European Union Member State sets its own VAT rates applicable to goods and services marketed within its territory, according to its economic and budgetary objectives.
The tables below provide an overview of the VAT rates currently applicable in Europe, including standard rates, reduced rates and super-reduced rates, where applicable. They are an essential resource for businesses, accounting professionals and international trade professionals seeking to meet their tax obligations while optimising their financial management.
Why is it important to know the VAT rates in Europe?
- Understanding the VAT rates in Europe is a major issue for any company carrying out cross-border transactions. Applying an incorrect rate may result in tax compliance risks and expose the company to financial penalties.
- From a strategic perspective, accurately identifying the applicable VAT rates makes it possible to anticipate the tax impact on costs, margins and selling prices. This knowledge contributes to more reliable financial planning and better decision-making.
- In the context of international trade within the European Union, VAT plays an essential role in securing transactions. Companies operating across several markets must incorporate local VAT rules into their processes in order to minimise reporting errors and facilitate their business activities.
The table below has been designed as a practical reference tool for quickly checking the VAT rates currently applicable in European countries. It facilitates the comparison of different tax regimes and helps professionals with the day-to-day management of their tax obligations.
| Member State | Country Code | Standard Rate | Reduced Rates | Super Reduced Rate |
|---|---|---|---|---|
| Austria | AT | 20% | 10%, 13% | |
| Belgium | BE | 21% | 6%, 12% | |
| Bulgaria | BG | 20% | 9% | |
| Croatia | HR | 25% | 5%, 13% | |
| Cyprus | CY | 19% | 5%, 9% | |
| Czech Republic | CZ | 21% | 12% | |
| Denmark | DK | 25% | ||
| Estonia * | EE | 24% | 9% | |
| Finland * | FI | 25,50% * | 14%, 13,5% * | |
| France | FR | 20% | 5.5%, 10% | 2.10% |
| Germany | DE | 19% | 7% | |
| Greece | EL | 24% | 6%, 13% | |
| Hungary | HU | 27% | 5%, 18% | |
| Ireland | IE | 23% | 9%, 13.5% | 4.80% |
| Italy | IT | 22% | 5%, 10% | 4% |
| Latvia | LV | 21% | 5%, 12% | 5% |
| Lithuania * | LT | 21% | 9%, 12% * | |
| Luxembourg | LU | 17% | 8%, 14% | 3% |
| Malta | MT | 18% | 5%, 7% | |
| Netherlands | NL | 21% | 9% | |
| Poland | PL | 23% | 5%, 8% | |
| Portugal | PT | 23% | 6%, 13% | |
| Romania | RO | 21% | 11% | |
| Slovakia | SK | 23% | 19%, 5% | |
| Slovenia | SI | 22% | 5%, 9.5% | |
| Spain | ES | 21% | 10% | 4% |
| Sweden | SE | 25% | 6%, 12% |
* countries in which one or more rates have been changed compared with 2025.
VAT Rates Applicable in the United Kingdom in 2026
| State | Country Code | Standard Rate (%) | Reduced Rate (%) | Zero Rate (%) |
|---|---|---|---|---|
| United Kingdom | UK | 20 | 5 | 0 |
VAT Rates Applicable in Switzerland in 2026
| State | Code Country | Standard rate (%) | Reduced rate 1 (%) | Zero rate (%) |
|---|---|---|---|---|
| Switzerland | CH | 8,1 | 2,6 | 0 |
Please note that the VAT rates shown may change during the year depending on national tax decisions.
Among the Member States of the European Union, Luxembourg stands out by applying the lowest standard VAT rate in 2026, set at 16%.
Conversely, Hungary applies the highest standard VAT rate in 2026, with a rate reaching 27%, the highest level in the European Union.
Taking all European Union countries into account, the average VAT rate stands at approximately 21.82%, reflecting the differences between national tax policies.
ASD Group, your accredited tax representative
ASD Group supports companies with international VAT management, providing comprehensive expertise in tax advice and operational assistance. Our aim is to ensure full compliance with local tax regulations, particularly with regard to the correct application of applicable VAT rates.
Through continuous regulatory monitoring, we anticipate legislative developments and offer tailored solutions designed to simplify and optimise VAT management. Our offering includes VAT returns, VAT refund claims and strategic support regarding international tax obligations.
Our team of indirect tax specialists is available to advise and support you and develop tailored solutions adapted to your organisation. To find out more about our services or get answers to your questions regarding VAT in your country, please do not hesitate to contact our experts.
