VAT rates are regulated within the European Union and are likely to evolve differently from one Member State to another. There are different rates: standard, reduced, super-reduced.
Please find below a summary table of VAT rates as of 1 January 2023 in the 27 EU Member States.
VAT rates in force in Europe as of January 1, 2023
|Member state||Standard rate (%)||Parking rate (%)||Reduced rate 1 (%)||Reduced rate 2 (%)||Super Reduced Rate (%)|
VAT rates types within the EU
Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax defines a legal framework for VAT rates within the EU and leaves Member States free to determine the number and level of rates they wish to apply.
- Standard VAT rate: Corresponds to the standard rate that EU countries must apply to all non-exempt goods and services. It cannot be less than 15%. On the other hand, the directive does not set any ceiling.
- Reduced VAT rates: EU countries have the option of having one or two reduced rates, which apply only to goods and services listed in Annex III of Directive 2006/112/EC. They are not applicable to electronic services and cannot be less than 5%.
- Parking rate: Member States which applied a reduced rate of VAT before 1 January 1991 to products not listed in Annex III of the VAT Directive have been authorized to apply, on a provisional basis, a “parking rate” which does not may be less than 12%.
- Super reduced rates: These are the rates below 5%. They only apply to very few categories of goods. For example, in France, the super-reduced VAT rate of 2.1% is only applicable to certain medicines or even to the audiovisual license fee.