VAT Rates in Europe 2026: All 27 EU Member States

EU VAT System Overview

The European Union operates a harmonized VAT system across all 27 member states. While EU directives set minimum rates and general rules, each country maintains sovereignty over its exact VAT rates and certain exemptions.

Key EU VAT Facts:

• Minimum Standard Rate: 15% (EU Directive 2006/112/EC)
• Maximum Standard Rate: No limit (Hungary currently highest at 27%)
• Minimum Reduced Rate: 5% (with exceptions)
• Average Standard Rate: 21.9% across the 27 member states
• Intra-EU Trade: 0% VAT with valid VAT numbers

How Much Is VAT in Europe?

There is no single European VAT rate. Each country sets its own, and in 2026 standard rates across the European Union run from 17% in Luxembourg to 27% in Hungary, averaging 21.9% across the 27 member states. That average is the highest of any region in the world — most of Asia and the Gulf sit between 5% and 12%.

Three numbers answer most questions about VAT in Europe:

• Typical rate: 21% is the most common standard rate in the EU (Belgium, Czech Republic, Latvia, Lithuania, the Netherlands, Romania and Spain all use it).
• Lowest European VAT: Switzerland at 8.1% — well below any EU country, because Switzerland is outside the EU VAT area. Inside the EU, Luxembourg's 17% is the floor, and its 3% super-reduced rate is the lowest positive VAT percentage in the Union.
• Highest European VAT: Hungary at 27%, followed by Finland at 25.5% and a group at 25% (Denmark, Sweden, Croatia and Norway).

EU law sets a floor, not a ceiling: Directive 2006/112/EC requires a standard rate of at least 15% and reduced rates of at least 5%, but leaves the exact figures to each member state. That is why prices for the same product carry very different tax in Copenhagen and Luxembourg City.

Is there a European country with no VAT?

No EU member state is VAT-free — it is a condition of membership. A handful of European jurisdictions outside the EU VAT area do operate without VAT, and several EU territories (the Canary Islands, Ceuta and Melilla, and the Åland Islands) are formally excluded from it. See countries with no VAT for the full picture.

To work out the tax on a specific amount at any of these rates, use the VAT calculator.

Searches for "VAT in Europe" often mean the continent rather than the Union. These eight European countries operate VAT outside the EU VAT area, so intra-EU rules such as the zero-rated intra-community supply and the One-Stop Shop do not apply to them.

The United Kingdom left the EU VAT area on 1 January 2021. Its 20% standard rate is unchanged, but supplies between the UK and the EU are now imports and exports rather than intra-community transactions — which is why so many cross-border invoices now rely on the reverse charge mechanism.

What is the EU VAT number format?

Each EU country has its own VAT number format, typically starting with the country code (e.g., DE for Germany, FR for France) followed by 8-12 digits. You can verify EU VAT numbers through the VIES system.

How does intra-EU trade work?

When selling B2B between EU countries with valid VAT numbers, the supply is zero-rated. The buyer accounts for VAT through the reverse charge mechanism in their country.

What is the One-Stop Shop (OSS)?

OSS allows businesses to declare and pay VAT on all EU B2C distance sales through a single portal in one EU country, rather than registering in each member state.

Are VAT rates the same across the EU?

No, while the EU sets minimum rates (15% standard, 5% reduced), each country determines its own rates. They range from 17% (Luxembourg) to 27% (Hungary) for standard rates.

What is VIES?

VAT Information Exchange System (VIES) is the EU system for validating VAT numbers and reporting intra-community supplies. All B2B cross-border transactions must be reported.

What is the average VAT rate in Europe?

The 27 EU standard rates average 21.9% in 2026. Including the eight non-EU European countries listed above pulls the continental average down slightly, mainly because of Switzerland's 8.1%.

Is VAT only used in Europe?

No. VAT — or its equivalent, GST — is used in more than 170 countries. Europe simply has the highest rates: the EU average of 21.9% compares with 10% in Australia and Japan, 9% in Singapore and 5% in the UAE. The main holdout is the United States, which uses state and local sales tax instead. Compare every rate in the VAT rates by country table.