The Value Added Tax (VAT) is an indirect tax paid by the final consumer on various goods and services. It is collected by the company selling the good or service.
Depending on the type of product or service, the company’s tax regime, and the amount of the price or service, the applicable VAT rates may vary.
The Member States of the European Union, as well as Switzerland and the United Kingdom, have the option to apply standard or reduced rates. These rates may vary between countries and also across certain categories of products and services. In 2025, the Value Added Tax (VAT) continues to play a central role in the tax system of European countries. Each Member State of the European Union (EU) applies VAT rates that vary according to its national tax policies. These rates apply to goods and services traded within their territory.
The tables below provide an overview of the different VAT rates applied across Europe, including standard, reduced, and super-reduced rates where applicable. They serve as a valuable resource for businesses, accountants, and international trade professionals seeking to comply with tax obligations while optimising their financial management.
Why know the 2025 VAT rates in Europe?
- Tax compliance: Each cross-border transaction must be invoiced with the correct VAT rate.
- Financial planning: Understanding the applicable rates allows for better cost and pricing management.
- International trade: For companies operating within the EU, a good understanding of VAT rates is essential to avoid tax errors.
Feel free to use this table as a reference tool to navigate effectively through the ever-evolving European tax environment.
2025 VAT rates applied by EU Member States
| Member states | Country code | Standard rate | Reduced rates | Super-reduced rate |
|---|---|---|---|---|
| Autria | AT | 20% | 10%, 13% | |
| Belgium | BE | 21% | 6%, 12% | |
| Bulgaria | BG | 20% | 9% | |
| Croatia | HR | 25% | 5%, 13% | |
| Cyprus | CY | 19% | 5%, 9% | |
| Czech Republic | CZ | 21% | 10%, 15% | |
| Denmark | DK | 25% | ||
| Estonia * | EE | 22% * (24% from July 1, 2025) | 9% | |
| Finland * | FI | 25,50% * | 10%, 14% | |
| France | FR | 20% | 5,5%, 10% | 2,1% |
| Germany | DE | 19% | 7% | |
| Greece | EL | 24% | 6%, 13% | |
| Hungary | HU | 27% | 5%, 18% | |
| Ireland | IE | 23% | 9%, 13,5% | 4,8% |
| Italy | IT | 22% | 5%, 10% | 4% |
| Latvia | LV | 21% | 5%, 12% | 5% |
| Lithuania | LT | 21% | 5%, 9% | |
| Luxembourg | LU | 16% | 7% 13% | 3% |
| Malta | MT | 18% | 5%, 7% | |
| Netherlands | NL | 21% | 9% | |
| Poland | PL | 23% | 5%, 8% | |
| Portugal | PT | 23% | 6%, 13% | |
| Romania | RO | 19% | 5%, 9% | |
| Slovakia * | SK | 23% * | 19% *, 5% | |
| Slovenia | SI | 22% | 5%, 9,5% | |
| Spain | ES | 21% | 10% | 4% |
| Sweden | SE | 25% | 6%, 12% |
* Countries where one or more rates have changed compared to 2024.
2025 VAT rates applied in the United Kingdom
| State | Country Code | Standard Rate (%) | Reduced Rate (%) | Zero Rate (%) |
|---|---|---|---|---|
| United Kingdom | UK | 20 | 5 | 0 |
2025 VAT rates applied in Switzerland
| State | Country Code | Standard Rate (%) | Reduced Rate (%) | Zero Rate (%) |
|---|---|---|---|---|
| Switzerland | CH | 7,7 | 2,5 | 0 |
Note: These rates may vary during the year.
The Member State applying the lowest VAT rate in 2025 is Luxembourg, with a standard rate of 16%.
Hungary, on the other hand, is the Member State applying the highest VAT rate in 2025, with a standard rate of 27%.
The average rate in the EU is approximately 21.72%.
Which VAT rates for 2025 have been modified compared to 2024?
2025 VAT rates in Estonia
On December 11, 2024, the Estonian government approved the introduction of a temporary security tax (effective until the end of 2028) to develop defense capabilities and security-related investments:
- The temporary tax on securities includes three distinct tax measures.
- One of the measures consists of increasing the VAT rate from 22% to 24%, starting from July 1, 2025.
2025 VAT rates in Finland
On June 28, 2024, the Finnish Parliament adopted the bill HE 61/2024 to address economic difficulties:
- The standard VAT rate will increase from 24% to 25.5%, effective from September 1, 2024.
- This new rate will apply to goods and services currently subject to the 24% rate.
2025 VAT rates in Slovakia
On October 3, 2024, the Slovak National Council adopted an amendment to the VAT law:
- The standard VAT rate will increase from 20% to 23%, effective from January 1, 2025.
- The reduced rate of 10% will be removed and replaced by a new reduced rate of 19%.
- The second reduced rate of 5% will remain unchanged.
At ASD Group, we assist our clients in managing VAT at the international level, offering advisory and support services to ensure compliance with local tax regulations, particularly regarding VAT rates. We closely monitor legislative changes and provide tailored solutions to optimise VAT management, whether for declarations, refund requests, or strategic advice on tax compliance. Our team of experts is available to support you, guide you, and provide customised solutions. If you wish to learn more about our services or have any questions regarding VAT in your country, feel free to contact us.
