Why do EU VAT rates differ between countries?

Each EU member state sets its own VAT rates within EU guidelines. The EU mandates a minimum standard rate of 15% but allows countries to set higher rates and apply reduced rates to certain goods and services.

Which EU country has the highest VAT rate?

Hungary has the highest standard VAT rate in the EU at 27%. Luxembourg has the lowest at 17%. The UK rate is 20%, in line with major economies such as France and Austria.

Does EU VAT apply to UK businesses after Brexit?

UK businesses selling digital services to EU consumers must register for VAT in each EU country where they have customers, or use the EU One Stop Shop (OSS) scheme. B2B sales use the reverse charge mechanism.

EU VAT Comparison Calculator — Compare VAT Rates Across Europe

EU VAT Comparison Calculator

Compare the VAT cost of a purchase across EU countries and the UK. Useful for understanding cross-border pricing differences and VAT obligations on digital services.

Net (ex-VAT) amount (£/€) Select countries to compare

Austria (20%) Belgium (21%) Bulgaria (20%) Croatia (25%) Cyprus (19%) Czech Republic (21%) Denmark (25%) Estonia (20%) Finland (26%) France (20%) Germany (19%) Greece (24%) Hungary (27%) Ireland (23%) Italy (22%) Latvia (21%) Luxembourg (17%) Malta (18%) Netherlands (21%) Poland (23%) Portugal (23%) Romania (19%) Slovakia (20%) Slovenia (22%) Spain (21%) Sweden (25%) UK (20%)

How it's calculated

VAT Amount = Net Amount × VAT Rate
Gross Amount = Net Amount + VAT Amount

Frequently Asked Questions

Why do EU VAT rates differ between countries?: Each EU member state sets its own VAT rates within EU guidelines. The EU mandates a minimum standard rate of 15% but allows countries to set higher rates and apply reduced rates to certain goods and services.
Which EU country has the highest VAT rate?: Hungary has the highest standard VAT rate in the EU at 27%. Luxembourg has the lowest at 17%. The UK rate is 20%, in line with major economies such as France and Austria.
Does EU VAT apply to UK businesses after Brexit?: UK businesses selling digital services to EU consumers must register for VAT in each EU country where they have customers, or use the EU One Stop Shop (OSS) scheme. B2B sales use the reverse charge mechanism.