How Much Is VAT? European VAT Rates by Country

How much is VAT in Europe?

Value-Added Tax (VAT) in Europe ranges from 17% in Luxembourg to 27% in Hungary for the standard rate (European Commission). The UK, which left the EU but kept its own VAT system, charges 20% (HMRC). There is no single "European VAT rate" — each country sets its own standard rate through national law, and most also apply one or more lower reduced rates to specific goods and services. To compare Europe against the US, Canada, and other major economies in one place, see our global VAT, GST & sales tax rates reference.

Rates vary this much because VAT is a national tax, not an EU-wide one. The EU only sets minimum rules — a standard rate of at least 15% and reduced rates of at least 5% (Your Europe) — leaving each member state free to set its own exact percentages and decide which categories qualify for a discount. The table below is the fastest way to find the current rate for any country and jump straight to a calculator.

2026 VAT rates by country

Ranked from highest to lowest, here's how each country's standard VAT rate compares:

Don't see a calculator for your country? Use the VAT Reverse Calculator to work forward or backward from any rate and any currency.

Standard, reduced, and zero-rated: what's the difference?

• Standard rate — the default VAT rate that applies to most goods and services unless a lower rate is specifically written into law. This is the number most people mean when they ask "how much is VAT in [country]."
• Reduced rate — a lower percentage a government applies to specific categories it wants to keep more affordable, commonly food, books, medicine, household energy, and public transport. Many countries, like France and Italy, have more than one reduced rate for different categories.
• Zero-rated (0%) — no VAT is charged to the buyer at all, but unlike a true exemption, the seller can still reclaim VAT paid on their own business costs. The UK zero-rates most food, books, and children's clothing; Ireland zero-rates certain food, oral medicine, and children's items.

What do IVA, TVA, MwSt, BTW, Moms, and ÁFA mean?

VAT goes by a different name in almost every language — they all translate to "value-added tax," but the local abbreviation is what appears on receipts, invoices, and price tags:

Are VAT-inclusive prices required in Europe?

Yes. Unlike US sales tax, which is typically added at checkout, EU and UK consumer protection law requires that prices shown to consumers already include VAT. When you see a price on a shelf, menu, or e-commerce checkout page in Italy, Germany, France, or the UK, that is the final price — VAT is baked in, not added on top. Business-to-business quotes are the exception: B2B invoices commonly show the net (pre-VAT) price separately, with VAT itemized as a line item.

Reduced VAT rates on everyday essentials

Nearly every country in the table applies at least one reduced rate to make essentials more affordable. Common examples in 2026 include:

• Food and groceries — reduced or zero-rated in most countries (e.g. 0% in the UK, 5.5% in France, 4% in Italy and Spain).
• Books, newspapers, and e-books — reduced in most countries (e.g. 5% in Hungary, 6% in Greece and Portugal).
• Medicine and healthcare products — reduced in most countries (e.g. 4% in Italy, 10% in Spain).
• Public transport and household energy — reduced in many countries (e.g. 9% in the Netherlands, 13% in Austria).

Denmark is the notable exception: it applies a single flat 25% rate to almost everything, with essentially no reduced-rate category.

Worked example: a €100 purchase in Italy

Worked example: a £100 purchase in the UK

Reversing the calculation: finding the pre-VAT price

If you only have the VAT-inclusive total — a receipt, an invoice, or a checkout price — and need to find the original net price, divide by 1 + the rate instead of multiplying:

For example, a €122 total in Italy reverses to €122 ÷ 1.22 = €100 net, meaning €22 of that total was IVA. A £120 total in the UK reverses to £120 ÷ 1.20 = £100 net, meaning £20 was VAT.

For the full method with more country examples, see How to Work Out VAT Backwards, or use the VAT Reverse Calculator to do it instantly for any rate.

Selling into Europe: the €10,000 digital VAT threshold

If you sell digital goods or services — apps, e-books, streaming subscriptions, online courses, SaaS — to consumers across the EU, you generally don't need to register for VAT in every individual country. Once your total EU-wide sales to consumers exceed €10,000 per year, you must charge VAT at the rate of the buyer's country (not your own), but you can report and remit it all through a single One Stop Shop (OSS) registration in one EU member state. Below the €10,000 threshold, you may be able to charge your home country's rate instead — check current OSS rules before relying on this.

Rates change — verify before high-value transactions

VAT rates are set through each country's national budget process and can change with little notice — Finland's standard rate moved from 24% to 25.5% in recent years, and governments regularly adjust reduced-rate categories. The figures on this page reflect confirmed 2026 rates, but for a high-value purchase, an invoice, or a cross-border sale, always confirm the current rate with the relevant country's tax authority before finalizing the transaction.

Last updated: May 15, 2026 · Rate source metadata is tracked in the TaxesLedger tax data registry.

Data methodology reviewed by M. Imtinan Farooq — Data Engineer focused on financial data systems.

Imtinan specializes in financial data systems and multi-state US sales tax modeling. With hands-on experience building data pipelines that attach source metadata, confidence labels, and verification status to tax records, he helps keep TaxesLedger rates auditable and easier to refresh. Connect with him on LinkedIn. This is an educational calculator, not tax, accounting, or legal advice.

Data Sources: State DORs · Canada Revenue Agency · EU VAT authorities · Tax Foundation references