VAT Rates in the EU
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How does VAT work in the EU?
VAT (value added tax) is a type of consumption tax. Governments in EU countries apply it on the sale of goods and services.
VAT isn’t paid by businesses — instead, it’s charged to consumers in the price of goods, and collected by businesses, making it an indirect tax. Businesses are then responsible for reporting it to the government.
EU VAT works on the ‘destination principle’. VAT is paid to the government of the EU country of import because it is a consumption tax so is paid where the goods are consumed. For example, if a consumer living in France buys a pair of trainers from Italy, VAT is paid to the French government at the applicable French rate.
EU VAT rates.
EU VAT rates.
| Country | Standard VAT rate | First reduced rate | Second reduced rate | Super reduced rate |
|---|---|---|---|---|
Austria | 20% | 13% | 10% | |
Belgium | 21% | 12% | 6% | |
Bulgaria | 20% | 9% | ||
Cyprus | 19% | 9% | 5% | |
Czech Republic | 21% | 15% | 10% | |
Croatia | 25% | 13% | 5% | |
Denmark | 25% | |||
Estonia | 20% | 9% | ||
Finland | 24% | 14% | 10% | |
France | 20% | 10% | 5.5% | 2.1% |
Germany | 19% | 7% | ||
Greece | 24% | 13% | 6% | |
Hungary | 27% | 18% | 5% | |
Ireland | 23% | 13.5% | 9% | 4.8% |
Italy | 22% | 10% | 5% | 4% |
Latvia | 21% | 12% | 5% | |
Lithuania | 21% | 9% | 5% | |
Luxembourg | 17% | 8% | 3% | |
Malta | 18% | 7% | 5% | |
The Netherlands | 21% | 9% | ||
Poland | 23% | 8% | 5% | |
Portugal | 23% | 13% | 6% | |
Romania | 19% | 9% | 5% | |
Slovakia | 20% | 10% | ||
Slovenia | 22% | 9.5% | ||
Spain | 21% | 10% | 4% | |
Sweden | 25% | 12% | 6% |
VAT for businesses.
If you’re running a business, there are a few things you should know about VAT.
Importing goods from abroad? Find a cheaper alternative.
If you are interested in how to calculate VAT – Calculate your VAT here.
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Tax-free shopping - VAT for travellers.
So, you’ve done some shopping abroad, and paid a healthy amount of money for VAT. The good thing is you can often get the amount refunded once you’ve returned home.
For example, European Union residents can get a VAT refund on goods bought in Singapore from a retailer that offers tax-free shopping.
The conditions for a VAT refund are different in every country and should be checked according to your destination — there’s usually a minimum purchase amount, and some exceptions to be considered.
If you’re planning on visiting any of these countries, have a look at their rules for tax-free shopping. And if you’d like to save even more money, don’t miss out on the Wise travel money card, and spend in shops or online at the real exchange rate.
VAT Refund.
When you’ve visited the EU, you’ll be able to get a VAT refund on items bought if:
- You live outside the EU and are going back home
- You’re an EU resident and are leaving the EU for 12 months or more
Each European country has a couple of additional rules for reclaiming VAT, click on a country in the table above to find out more.
There are multiple ways of receiving the refund — either get paid immediately at a refund booth at the airport or send the approved form to a refund company.
How to get a VAT refund in 3 simple steps?
Application form
Get a Tax Refund Application Form from the retailer. You might also be asked to show your passport to check that you’re eligible.
Customs check
At customs, present your passport, VAT form(s), VAT invoice(s) and the tax-free goods.
Refund approved
If all the criteria is met, customs will approve your form. You’ll get a signed form that allows you to receive the refund.