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VAT Rates in the EU

Learn about the VAT rate in the EU, rules and requirements. And get some handy insight into how Wise can help, with mid-market rate currency exchange, for a better deal when paying for goods from overseas.
VAT Rates

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.

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EU VAT rates.

CountryStandard VAT rateFirst reduced rateSecond reduced rateSuper 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%

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 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.

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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.

FAQ about VAT rate.

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