Europe (EU) Data

The VAT Directive 2006/112/EC of 28 November 2006 (Official Journal L 347, 11.12.2006, p.1) provides in its Articles 93 to 130 and Annex III a legal framework for the application of VAT rates in Member States. Member States have made and continue to make wide use of the possibilities offered within this framework; as a result, the situation is in practice disparate and complex.

The basic rules are simple:

• Supplies of goods and services subject to VAT are normally subject to a standard rate of at least 15%;
• Member States may apply one or two reduced rates of not less than 5% to goods and services enumerated in a restricted list;

These simple rules are however complicated by a multitude of derogations granted to certain Member States, in some instances a majority of Member States. These derogations were granted during the negotiations preceding the adoption of the VAT rates Directive of 1992 and in the Acts of Accession to the European Union. Overall, such derogations prevent a coherent system of VAT rates in the EU from being applied.

Current Rates (01 Jan 2017)