Standard VAT rates in EU member states

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Standard VAT rates in the 27 EU member states range from 17 per cent in Luxembourg to 27 per cent in Hungary. Recent changes include Finland’s 13.5 per cent reduced rate, Sweden’s temporary 6 per cent food rate, Ireland’s restored 9 per cent rate, Romania’s 21 per cent standard rate and 11 per cent reduced rate, and Slovakia’s rise to 23 per cent.

How EU VAT rates work

VAT applies to nearly all goods and services supplied for use or consumption within the EU. Each member state sets its own rates within the rules of the VAT Directive.

The standard rate applies to most goods and services. Art. 97 of the VAT Directive sets a minimum standard rate of 15 per cent, but sets no maximum.

Countries may use up to two reduced rates, with a minimum of 5 per cent, for up to 24 categories in Annex III of the VAT Directive. They may also apply one rate below 5 per cent and one zero rate for up to seven basic-needs categories, including food and medicines.

Certain countries retain rates called parking rates for items beyond Annex III, provided they do not fall below 12 per cent.

The simple average of all 27 standard rates is 21.9 per cent.

Changes that affect 2026 trading

Finland’s standard VAT rate rose from 24 per cent to 25.5 per cent on 1 September 2024. Its main reduced rate then fell from 14 per cent to 13.5 per cent on 1 January 2026.

Finnish groceries use the 13.5 per cent rate. Travel tickets and accommodation services were among the supplies moved to 13.5 per cent from 1 January 2026.

Sweden reduced VAT on food from 12 per cent to 6 per cent on 1 April 2026. The reduction ends on 31 December 2027.

Restaurant services in Sweden remain at 12 per cent. A restaurant selling eat-in and takeaway meals charges 12 per cent on eat-in meals and 6 per cent on takeaway meals.

Ireland restored a 9 per cent VAT rate from 1 July 2026. It applies to food and catering and hairdressing, replacing the 13.5 per cent rate for those supplies.

Romania has used a 21 per cent standard rate and one 11 per cent reduced rate since 1 August 2025 under Legea nr. 141/2025. Slovakia raised its standard rate from 20 per cent to 23 per cent on 1 January 2025.

Working out VAT on a sale

To add VAT to a net price, multiply the net amount by one plus the rate. At 20 per cent, that means multiplying by 1.2.

For example, a €100 net sale at 20 per cent VAT produces €120 including VAT. The VAT amount is €100 multiplied by 20 per cent, which equals €20.

To find the net amount within a VAT-inclusive price, divide the gross price by one plus the rate. Do not subtract the percentage rate from the gross price.

For example, a €120 VAT-inclusive price at 20 per cent contains €20 VAT. The calculation is €120 multiplied by 20 per cent, divided by 1.2.

What can trip up a business

A standard rate is not always the rate for a particular supply. Reduced, super-reduced, zero and parking rates can apply where a country permits them.

The European Commission says member states set their own VAT rates within the VAT Directive. Its guidance tells businesses to confirm the current rate with their country’s VAT authority.

The Commission’s 13 July 2026 compilation does not include any rate change made after that date. Regional rates are absent from the table, including those in the Azores and the Canary Islands.

Cross-border consumer sales may require the rate of the customer’s country. Under the One Stop Shop, a seller charges VAT at that country’s rate.

For cross-border consumer transactions involving goods or electronic services, the EU uses one €10,000 threshold. Beneath that amount, VAT from the seller’s own country can still apply.

Goods exported from the EU to a country outside it are not subject to EU VAT. The importing country applies the VAT due instead.

What to do next

Member states select their own rates, and a supply can fall within a reduced or special category. The Commission tells businesses to obtain the current rate from their own country’s VAT authority.

For sales to consumers in another EU country, check whether the One Stop Shop changes the rate charged. For cross-border VAT rules, see how VAT works across the EU for businesses.

Common questions

Which EU country has the highest standard VAT rate?

Hungary has the highest standard rate in the table, at 27 per cent. Luxembourg has the lowest, at 17 per cent.

Is the standard VAT rate the same across the EU?

No. The VAT Directive sets a minimum standard rate of 15 per cent, while each member state chooses its own rate.

Does Sweden charge 6 per cent VAT on all food service?

No. Sweden charges 6 per cent on food from 1 April 2026 to 31 December 2027. Restaurant services remain at 12 per cent.

What VAT rate applies to EU consumer sales through OSS?

The One Stop Shop uses the VAT rate of the customer’s country. The seller charges that country’s rate to EU consumers.

Sources

• European Commission: VAT Rates - Taxation and Customs Union
• Your Europe: VAT rules and rates: standard, special & reduced rates
• Finnish Tax Administration: The changes to VAT rates - vero.fi
• Finnish Tax Administration: Rates of VAT - vero.fi
• Swedish Tax Agency: Livsmedelsmomsen sänks till 6 procent
• Government of Ireland: Government Marks Reduction of VAT Rate to 9% for Food Businesses and Hairdressers
• Romanian tax authority (ANAF): Principalele modificri
• European Commission: Recent VAT changes in certain EU Member States
• European Commission: VAT One Stop Shop - VAT e-Commerce - One Stop Shop
• Your Europe: EU VAT One Stop Shop (OSS)