VAT Rate EU & Global

VAT Rate EU & Global

2021 European Union VAT rates

The EU sets the broad VAT rules through European VAT Directives, and has set the minimum standard VAT rate at 15%.  The 27 member states (plus UK) are otherwise free to set their standard VAT rates.  The EU also permits a maximum of two reduced rates, the lowest of which must be 5% or above. Some countries have variations on this, including a third, reduced VAT rate, which they had in place prior to their accession to the EU.

Member states have now agreed that they will be free to set the reduced rates on most goods and services, including e-books; domestic fuel; clothing; and female hygiene products.

International VAT and GST rates for 2021

Below is a summary of the standard and reduced VAT (Values Added Tax) and GST (Goods & Sales Tax) rates across the world