2022 VAT Rates in Europe

Updated on May 16, 2022

More than 170 nations throughout the world, including all of Europe, charge a tax on goods and services known as the Value-Added Tax (VAT). According to today’s tax map, EU member states’ VAT rates vary across countries, even though they have been standardised to some extent by the EU.

Consumption taxes are based on the value contributed to a product or service at each stage in the production process. The VAT that has already been paid is credited to each company in the value chain. The final consumer does not, making it a tax on the final consumption.

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Hungary, Croatia, Denmark, and Sweden are the EU countries with the highest standard VAT rates (all at 27 percent) (all at 25 percent). There is a 17 percent standard VAT rate in Luxembourg, followed by an 18 percent standard VAT rate in Malta and additional rates in Cyprus, Germany, and Romania (all at 19 percent). Standard VAT rates in the EU average 21 percent, six percentage points above the minimum allowed by EU regulations.

Consumption taxes, in general, are a cost-effective technique to raise taxes. To keep economic distortions to a minimum, all final consumption should be subject to the same standard tax rate, with as few exceptions as feasible. Certain goods and services are exempt from VAT in EU countries, but the rates are lower.

2022 VAT Rates in Europe

VAT Rates Among European Union Member States and the United Kingdom, as of January 2022
Country Super-reduced Rate (%) Reduced Rate (%) Parking Rate (%) Standard Rate (%)
Austria (AT) 10 / 13 13 20
Belgium (BE) 6 / 12 12 21
Bulgaria (BG) 9 20
Croatia (HR) 5 / 13 25
Cyprus (CY) 5 / 9 19
Czech Republic (CZ) 10 / 15 21
Denmark (DK) 25
Estonia (EE) 9 20
Finland (FI) 10 / 14 24
France (FR) 2.1 5.5 / 10 20
Germany (DE) 7 19
Greece (GR) 6 / 13 24
Hungary (HU) 5 / 18 27
Ireland (IE) 4.8 9 / 13.5 13.5 23
Italy (IT) 4 5 / 10 22
Latvia (LV)  5 / 12 21
Lithuania (LT) 5 / 9 21
Luxembourg (LU) 3 8 14 17
Malta (MT) 5 / 7 18
Netherlands (NL) 9 21
Poland (PL) 5 / 8 23
Portugal (PT) 6 / 13 13 23
Romania (RO) 5 / 9 19
Slovakia (SK) 10 20
Slovenia (SI) 5 / 9.5 22
Spain (ES) 4 10 21
Sweden (SE) 6 / 12 25
United Kingdom (GB) 5

 

When one of the major EU VAT directives was adopted in 1991, some EU countries were applying reduced, super-reduced, or zero rates to goods and services that were not specified by the new regulations as falling within the zero-rate or reduced-rate categories. To ease the transition to a standard rate on these goods and services, a so-called “parking rate” was permitted. Although it was intended to be phased out, some countries still apply it.

Source: European Commission,  “Taxes in Europe Database v3,” https://ec.europa.eu/taxation_customs/tedb/vatSearchForm.html; and Richard Asquith, “2021 global VAT & GST rate changes,” Avalara, Jan. 1, 2022, https://www.avalara.com/vatlive/en/vat-news/2021-global-vat-rate-changes.html.