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VAT Rates of EU countries

Updated on Monday 29th October 2018

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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 three reduced rates of 0, 5 and 9%; 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 7%, 5%, and 0%; banking and insurance services are exempt.
Estonia A 20% standard VAT rate with reduced rates of 9% and 0%.
Romania 19% standard rate with a reduced rate of 9% and one at 3%.
Switzerland 8% is the value of the standard VAT rate, with two reduced rates of 3.8% and 2.5%.
The United Kingdom 20% standard rate with a reduced rate of 5% for certain goods and services.
Turkey 18% VAT with reduced rates of 8% 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 6%.
  • 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.


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