VAT rates by country — 2026
Standard, reduced, and zero rates for all 27 EU member states, the UK, Switzerland, and other major economies. Use the VAT calculator to apply any rate in seconds.
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| Country | Standard rate | Reduced rates | Local name |
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Rates are standard statutory rates as of 2026. Reduced rates shown are the most commonly applied tiers; many countries have additional category-specific rates or exemptions. Zero-rated supplies (0%) are indicated where applicable. Always verify with the national tax authority for rates applicable to a specific transaction.
How VAT works
The VAT formula
VAT is calculated as a percentage of the net (pre-tax) price. To add VAT: multiply the net price by (1 + rate ÷ 100). A €200 product with 20% VAT: €200 × 1.20 = €240 gross. The VAT is €40. To remove VAT from a gross price: divide by (1 + rate ÷ 100). €240 ÷ 1.20 = €200 net. The most common mistake is subtracting 20% from the gross (€240 × 0.20 = €48, giving €192) — this is wrong because 20% of the gross differs from 20% of the net. Use the VAT calculator to avoid this error entirely.
Standard vs reduced rates
Every country with VAT has a standard rate that applies to most goods and services, and one or more reduced rates for specific categories. Reduced rates typically cover food, medicines, books, children's items, and public transport — essentials that governments choose to tax more lightly. Zero-rating is a distinct category: a zero-rated supply carries a 0% rate but the seller is still VAT-registered and can reclaim input VAT on their purchases. An exempt supply, by contrast, is outside the VAT system entirely, and the seller cannot reclaim input VAT. The UK's zero-rating of food and children's clothing is the most well-known example; France's 2.1% rate on press publications is one of the most unusual.
EU VAT rules and the 15% minimum
EU law requires all member states to apply a standard VAT rate of at least 15%. In practice, all 27 members exceed this floor — Luxembourg's 17% is the lowest. The EU also sets minimum rates for reduced tiers (5% floor) but permits zero-rating for goods that were already zero-rated before 1991. Cross-border sales within the EU are generally taxed in the customer's country under the destination principle, which is why businesses selling into multiple EU markets must register for VAT in those markets once they exceed the relevant distance-selling threshold. For pricing cross-border sales correctly, seeing how a discount applied in one country affects the after-tax price in another is where the discount + tax calculator is useful.
Switzerland and the 2024 rate change
Switzerland is not an EU member but operates its own three-tier VAT system (MWST in German, TVA in French, IVA in Italian). On 1 January 2024, Switzerland raised its standard rate from 7.7% to 8.1% to fund the AHV/AVS pension system reform. The accommodation rate rose from 3.7% to 3.8%, and the reduced rate for food, non-alcoholic drinks, books, newspapers, and medicines increased from 2.5% to 2.6%. These are the rates in effect throughout 2026. Switzerland has the lowest standard VAT rate of any major European economy — a fact that makes it popular for cross-border shopping from neighbouring France, Germany, and Austria, where standard rates are 20%, 19%, and 20% respectively.
UK VAT after Brexit
The UK left the EU VAT system on 31 December 2020, but retained the same rate structure: 20% standard, 5% reduced (domestic fuel and power, children's car seats, home energy-saving materials), and 0% for most food, children's clothing, books, and prescription medicines. The UK's 20% rate has been unchanged since January 2011. Northern Ireland has a special status under the Windsor Framework and remains aligned with EU VAT rules for goods, though not for services. Businesses trading between Great Britain and the EU now face import VAT at the point of entry rather than the seamless cross-border treatment that applied pre-Brexit.
VAT and business pricing
For B2B pricing, VAT is typically quoted net — the buyer is VAT-registered and will reclaim the tax, so the effective cost is the net price. For B2C (retail) pricing, prices must be displayed gross (VAT-inclusive) in most countries, including all EU members and the UK. This means a product priced at €100 net at 21% VAT costs the consumer €121 — the €21 VAT passes through the business to the tax authority. For businesses setting retail prices across multiple European markets, the same net price produces a different gross price in each country depending on the applicable VAT rate. A €100 net price becomes €120 in Germany (19%), €121 in the Netherlands (21%), and €125 in Sweden (25%). The percentage change calculator can show the relative difference between any two of these gross prices. For margin analysis, the profit margin calculator computes the margin on the net price after confirming the gross price customers pay.
Reclaiming VAT as a visitor
Non-EU residents visiting EU countries can reclaim VAT on goods they purchase and take home, subject to minimum purchase thresholds (typically €50–175 per receipt depending on the country). The refund is obtained at the airport via tax refund operators such as Global Blue or Planet. The UK ended its VAT refund scheme for overseas visitors in 2021 — tourists buying in the UK can no longer reclaim VAT at departure. Switzerland continues to offer VAT refunds to non-Swiss residents on purchases above CHF 300 per receipt, processed at the border or at Zurich/Geneva airports.
Frequently asked questions
Hungary has the highest standard VAT rate in the EU at 27%. Sweden, Denmark, Norway (not EU), and Croatia all have 25%. The EU requires a minimum standard rate of 15%, but there is no upper limit.
Within the EU, Luxembourg has the lowest standard rate at 17%. Switzerland (not EU) has 8.1% — the lowest in Europe. Liechtenstein (also not EU) matches Switzerland at 8.1%.
The UK's standard VAT rate remains 20%, unchanged since January 2011. The UK retained the same structure: 20% standard, 5% reduced (domestic fuel, children's car seats), and 0% for food, children's clothing, books, and prescription medicines.
Switzerland's standard VAT rate is 8.1% as of January 2024, raised from 7.7% to fund AHV/AVS pension reform. The three tiers are: 8.1% standard, 3.8% for accommodation, and 2.6% for food, drinks, books, newspapers, and medicines.
Divide the gross (VAT-inclusive) price by (1 + rate ÷ 100). For €120 including 20% VAT: €120 ÷ 1.20 = €100 net. The VAT is €20. Never subtract 20% directly — that gives the wrong answer.
The standard rate applies to most goods and services. Reduced rates apply to categories governments tax more lightly — typically food, medicines, books, and public transport. Zero-rating means 0% VAT but the seller can still reclaim input VAT, unlike an outright exemption.
VAT-registered businesses charge VAT on sales and reclaim VAT on purchases. The net effect is cost-neutral for the business — they only remit the difference. The full VAT burden falls on the final consumer who cannot reclaim it.
EU law requires a minimum standard rate of 15%. All member states exceed this — Luxembourg's 17% is the lowest. For reduced rates, the minimum is 5%, though zero-rating is permitted for specific goods that were already zero-rated before 1991.