9 January 2026
VAT Rates of EU countries
Our offshore company setup agents present a list with the lowest value-added tax rates across countries in the European Union.
The value added tax is imposed on the delivery of goods and services across the European Union and each member state has a policy that complies with the general EU code on the applicability of this tax.
The table below presents the value-added tax rates in several jurisdictions across Europe. If you wish to find out more information about this tax, please reach out to one of our offshore company formation agents.
| Country | VAT rate |
| Cyprus | 19% standard VAT rate with reduced rates of 9%, 5% and 3% and a zero rate; some supplies are exempt altogether. |
| Germany | 19% standard rate and a reduced rate of 7% as well as exemptions to some types of transactions. |
| Luxembourg | A 17% rate as well as an intermediate 14% rate; an 8% and a 3% reduced rate are also applicable. |
| Malta | 18% standard rate with reduced rates of 12%, 7%, 5% and 0%; banking and insurance services are exempt. |
| Estonia | A 24% standard VAT rate (since 1 July 2025) with reduced rates of 13%, 9% and 0%. |
| Romania | 21% standard rate (since 1 August 2025) with a reduced rate of 11%. |
| Switzerland | 8.1% is the value of the standard VAT rate, with two reduced rates of 3.8% and 2.6%. |
| The United Kingdom | 20% standard rate with a reduced rate of 5% for certain goods and services. |
| Turkey | 20% VAT with reduced rates of 10% and 1%. |
Examples of the value-added tax in other countries include:
- France: 20% standard rate, reduced rates of 5.5% to 10% as well as a 2.1% rate for reimbursed medicines.
- Netherlands: 21% standard VAT rate with a reduced rate of 9%.
- Ireland: 23% standard rate with reduced rates: 13.5%, 9%, 4.8% and 0%.
The applicability of the VAT in the EU
The value added tax is imposed both on the domestic supply of goods and on intra-community acquisitions. In the latter case, the tax is usually charged at the rate applicable in the member state where the goods were shipped to.
Imported goods are subject to value-added tax at the rate practiced by the state where the import is made. This tax is charged at the border, usually at the same time with the customs duty. One of our offshore incorporation agents can give you more information about these taxation principles.
VAT exemptions in the EU
As seen in the table presented above, goods and services are generally subject to different types of value-added tax, however, a distinction is made between goods and services that are exempted and those that are zero-rated.
As far as VAT registration is concerned, investors need to observe the local registration requirements. The registration threshold will differ from one EU state to the other, so it is recommended to seek adequate counseling.
Our team of offshore company setup agents can provide tailored services in a number of EU jurisdictions. Contact us for more information about tax requirements in a country of choice.