Value Added Tax (VAT) is the most significant indirect tax in the European Union. As a business selling goods or services within the EU, understanding the correct VAT rate for each country is essential for compliance, accurate pricing, and avoiding costly penalties.
This guide covers every EU member state's VAT rates for 2026, explains when reduced rates apply, and answers the most common questions we see from EU businesses and freelancers.
Standard VAT Rates by Country (2026)
| Country | Standard Rate | Reduced Rate | Super-Reduced |
|---|---|---|---|
| Germany | 19% | 7% | — |
| France | 20% | 5.5% / 10% | 2.1% |
| Italy | 22% | 5% / 10% | 4% |
| Spain | 21% | 10% | 4% |
| Netherlands | 21% | 9% | — |
| Belgium | 21% | 6% / 12% | — |
| Poland | 23% | 5% / 8% | — |
| Sweden | 25% | 6% / 12% | — |
| Denmark | 25% | — | — |
| Ireland | 23% | 9% / 13.5% | 4.8% |
| Austria | 20% | 10% / 13% | — |
| Portugal | 23% | 6% / 13% | — |
| Greece | 24% | 6% / 13% | — |
| Romania | 19% | 5% / 9% | — |
| Czech Republic | 21% | 12% | — |
| Hungary | 27% | 5% / 18% | — |
| United Kingdom | 20% | 5% | — |
When Do Reduced Rates Apply?
Reduced VAT rates generally apply to essential goods and services. Common categories include:
- Food and non-alcoholic beverages — most EU countries apply a reduced rate (5%–13%)
- Books, newspapers, and e-publications — most countries apply 0%–10%
- Pharmaceuticals and medical equipment — commonly 0%–10%
- Hotel accommodation and restaurant services — typically reduced rates apply
- Children's clothing and footwear — zero-rated in Ireland and UK
B2B Cross-Border Sales: The Reverse Charge Mechanism
When selling goods or services B2B to a VAT-registered business in another EU member state, the reverse charge mechanism typically applies. Under reverse charge, the buyer (not the seller) accounts for the VAT in their own country. Your invoice should show the net price with a note: "Reverse charge — VAT to be accounted for by the recipient."
Digital Services: The One-Stop Shop (OSS)
If you sell digital services (software, streaming, e-books) to consumers (B2C) in other EU countries, you must charge the VAT rate of the customer's country. The EU's One-Stop Shop (OSS) scheme lets you register and file for all EU countries through a single member state portal, avoiding the need for 27 separate VAT registrations.
Frequently Asked Questions
What is the highest VAT rate in the EU?
Hungary has the highest standard VAT rate in the EU at 27%. Denmark and Sweden follow at 25%.
Which EU country has the lowest VAT?
Luxembourg has the lowest standard rate at 17%, followed by Malta (18%) and Germany (19%).
Do I charge VAT to customers outside the EU?
Generally no — exports to non-EU countries are zero-rated for VAT purposes. However, the importing country may charge import duties and taxes on arrival.