VAT Rates EU Countries 2025: Complete Overview + 2026 Changes

Last updated: December 2025. Looking for current VAT rates in Europe? This overview covers the standard VAT percentages for all 27 EU member states, including reduced rates and all changes for 2025 and 2026. Essential for businesses dealing with foreign customers or suppliers.

How VAT works in the EU

The European Union sets minimum VAT requirements. The standard rate must be at least 15%, but countries determine their own exact percentages. This leads to significant differences: from 17% in Luxembourg to as high as 27% in Hungary — the highest VAT rate in the world.

The average VAT rate in the EU is 21.3%. The Netherlands sits right at that mark with a standard rate of 21% and a reduced rate of 9%.

Key changes 2024-2025

Four EU countries raised their standard rates in the past year:

• Finland: From 24% to 25.5% (September 2024) — now the second highest in the EU
• Estonia: From 22% to 24% (July 2025) — reduced rates also increased
• Slovakia: From 20% to 23% (January 2025) — complete overhaul with new 19% rate
• Romania: From 19% to 21% (August 2025) — reduced rates consolidated to 11%

Planned changes 2026

Watch out for these upcoming changes:

• Netherlands: VAT on accommodation possibly from 9% to 21%
• Lithuania: Reduced rate from 9% to 12% for hotels and culture
• Ireland: Hospitality and catering from 13.5% to 9% (July 2026)

VAT rates all EU countries 2025

Use the search function and filters to quickly find the right country:

VAT exemption for B2B within the EU

Selling to business customers in other EU countries? A VAT exemption often applies (intra-community supply). The requirement is that your customer has a valid VAT number that you can verify through the VIES system.

Frequently asked questions

Which EU country has the highest VAT rate? Hungary at 27% — this is also the highest standard rate in the world.

Which EU country has the lowest VAT rate? Luxembourg at 17%. Malta (18%) and Cyprus (19%) are also below 20%.

What is the VAT rate in the Netherlands? The Netherlands has two rates: 21% (standard) and 9% (reduced). Note: accommodation may increase to 21% in 2026.