EU VAT Rates 2026: Full Table by Country

2026 VAT rates in the European Union

How to read the EU VAT rates table

The standard VAT rate is the default rate applied to goods and services that do not qualify for a reduced, super-reduced, exempt or special regime.

Reduced rates only apply to categories allowed by local law. These often include food, books, medicines, passenger transport, accommodation, renovation works or cultural services, but the scope is not identical across Member States. Two countries can have the same reduced rate and still apply it to different products.

Super-reduced rates exist only in some Member States. They usually cover tightly defined categories such as basic necessities, medicines, publications or specific social goods and services.

Parking rates are legacy intermediary rates kept by certain Member States for specific supplies that do not fit neatly into the standard or reduced rate framework. They are uncommon, but still relevant for some transactions.

Which EU country has the highest VAT rate?

Hungary has the highest standard VAT rate in the European Union at 27%. Denmark, Croatia, Sweden and Finland are also among the highest-rate countries, with standard rates at or above 25%.

At the other end of the table, Luxembourg has the lowest standard VAT rate in the EU at 17%. Malta follows with 18%, while Germany and Cyprus apply 19%.

This comparison is useful for pricing, but it is not enough to determine the VAT due on a sale. You still need to confirm the place of taxation and whether the product or service qualifies for a reduced rate in that country. A VAT calculator helps quantify the difference between rate scenarios. Cross-border sales also trigger EU Intrastat thresholds to monitor.

EU rules on VAT rates

The European Union does not impose a single VAT rate. Instead, the VAT Directive sets a common framework that Member States must respect.

The standard VAT rate must be at least 15%. Each Member State then chooses its national standard rate above that minimum.

Member States may also apply reduced rates to specific categories of goods and services. Directive Directive 2022/542 modernised the EU framework for reduced rates and gave Member States more flexibility for social, environmental and public health priorities.

In practice, this flexibility is exactly what makes EU VAT rate management complex. The same product can be taxed differently depending on the country, the precise product category, the sales channel and the customer profile.

What EU VAT rates change for cross-border sales

The applicable VAT rate starts with the place of taxation. For a domestic sale, the local rate usually applies. For a cross-border transaction, the analysis depends on the movement of goods or services, the customer status and the VAT regime used. Complex supply chains may involve VAT triangulation rules when three parties from different Member States are involved.

For intra-EU B2C distance sales, VAT is generally due in the Member State of consumption once the EU-wide EUR 10,000 threshold is exceeded or when the seller opts into the OSS. The seller must then apply the VAT rate of the customer's delivery country.

For intra-EU B2B transactions, the treatment is different. An exempt intra-Community supply of goods or a reverse-charge service is not handled like a B2C sale. The local VAT rate may not appear on the invoice, but the reporting obligations remain critical. A full analysis requires reviewing the EU intracommunity VAT rules that govern zero-rating conditions and evidence requirements.

For imports, import VAT depends on the country of customs clearance, the importer of record and the customs regime used. The VAT rate of the destination country is only one part of the analysis.

Why reduced VAT rates are the real risk area

The standard rate is usually easy to identify. Reduced rates are where mistakes happen.

A reduced VAT rate is never automatic. It depends on local legislation, the exact nature of the product, sometimes its intended use, presentation, distribution channel or supporting documentation.

Typical checks include:

• whether printed books and e-books are treated the same way in the country concerned;

• whether a standard food product and a dietary supplement fall under different categories;

• whether renovation or construction works meet the local conditions for a reduced rate;

• whether a medicine, medical device or cosmetic product has the correct VAT classification;

• whether specific territories or islands apply rates that differ from the mainland regime.

Before configuring VAT in an ERP, marketplace account or e-commerce platform, the product classification should be validated country by country.

E-commerce, marketplaces and OSS: which VAT rate applies?

For an e-commerce business selling to private customers in several EU countries, the VAT rate is generally the rate of the country of consumption. In practice, this means the country where the final customer receives the goods.

The VAT OSS scheme allows sellers to declare VAT due on eligible intra-EU B2C distance sales through a single Member State. It simplifies reporting, not rate selection. The seller still has to calculate VAT using the correct country and product rate.

Marketplaces add another layer. Depending on the flow, the platform may be deemed supplier for certain sales, or it may simply provide transaction data to the seller. The VAT treatment depends on the exact marketplace role, the goods movement and the seller's setup.

Common mistakes with VAT rates in Europe

The first mistake is applying the VAT rate of the seller's country to every sale. For intra-EU B2C sales, this quickly becomes wrong when the transaction is taxable in the customer's country of consumption.

The second mistake is copying a reduced rate without checking its local scope. A 6%, 9% or 10% reduced rate does not mean the same thing in every Member State.

The third mistake is forgetting rate updates. Member States can change VAT rates or reduced-rate categories during the year. Invoicing tools, ERPs, Shopify, Amazon, Prestashop and other platforms need regular updates.

The fourth mistake is confusing VAT rate application with VAT registration. Charging a foreign VAT rate does not automatically mean a local VAT number is required, but it may trigger reporting through OSS or a local VAT registration depending on the flow.

How to secure your EU VAT rates

Start from the actual transaction flow, not from the seller's country. Identify the country of departure, country of arrival, customer status, product category and sales channel. For B2B intra-Community transactions, verify a VAT number for each customer before invoicing.

Then validate three points:

• where VAT is due;

• which VAT rate applies to the product or service;

• which reporting regime applies: local VAT return, OSS, reverse charge, import VAT or exemption.

Finally, document the position. A VAT matrix by country and product family helps justify tax settings, avoid invoicing errors and respond faster in case of a tax audit. See our guide on Quick Fixes.