VAT rates in Europe in 2026: full review by country

Here’s a complete overview of VAT rates in Europe in 2026. You’ll find a table detailing, country by country within the European Union, the different rates in force according to the nature of sales of products or services. You’ll also find out about changes in VAT rates and the general rules applicable to rate-setting in Europe.

VAT rates in Europe in 2026: detailed table by member country

Here are the VAT rates to be applied in Europe in 2026:

2026 VAT rates in the European Union: summary of changes

Here are the main changes to VAT rates in Europe in 2026. They are limited to a few transactions in a few European countries.

In Belgium, as from 1 March 2026, the reduced VAT rate applicable to hotels, takeaway meals, leisure activities and entertainment services will increase from 6% to 12%.

In Germany, the reduced 7% VAT rate applicable to restaurant and catering services has been reintroduced as of 1 January 2026.

In the Czech Republic, a reform introduces a single 12% VAT rate for restaurant services and non-alcoholic beverages, alongside the introduction of a 0% VAT rate on prescription medicines.

In Ireland, the reduced 9% VAT rate will apply to meals and restaurant services as from 1 July 2026.

In Slovakia, since 1 January 2026, the VAT rate applicable to products high in sugar and salt has been increased from 19% to 23%, subject to specific exceptions, including baby food, 100% pure fruit juices and certain dairy products.

In the Netherlands, the VAT rate applicable to accommodation services has undergone a significant increase, rising from 9% to 21% as from 1 January 2026.

In Finland, the reduced VAT rate has been slightly decreased, from 14% to 13.5% on certain goods and services, with the aim of supporting household purchasing power and easing inflationary pressures.

In Lithuania, as from 1 January 2026, the reduced VAT rate applicable to accommodation services, passenger transport on regular routes (including baggage transport), and admission to cultural and artistic institutions and events will increase from 9% to 12%.              In addition, the VAT rate applicable to printed and electronic books will be reduced, with supplies of such publications now subject to a 5% reduced VAT rate, instead of 9%. The standard VAT rate of 21% and its scope of application remain unchanged.

General operation of VAT rates in EU member states

Although each EU member state has its own VAT rates, there are rules that apply throughout the EU. Here are the principles you need to know.

European VAT Directive: general rules on rates

VAT is a consumption tax applicable to the majority of goods and services sold or purchased in the European free-trade area. The European Union established Council Directive 2006/112/EC of November 28, 2006 on the common system of value added tax. EU Directive 2022/542 amends the 2006 directive. It changes the VAT rate rules in order to increase the freedom given to member states.

Minimum standard VAT rates in Europe

All countries must set this rate at a minimum of 15%. This rate corresponds to the rate generally applicable to the supply of goods and services, with the exception of reduced or special rates. On the other hand, the European Union does not set a maximum for this standard VAT rate.

The concept of a minimum reduced VAT rate in Europe

Annex III of the VAT Directive lists all the goods and services that may be subject to reduced VAT rates. Here are the limits applicable to these reduced rates:

• possibility of applying one or two reduced rates for each EU country;
• the lower limit of the reduced VAT rate is set at 5%, with the exception of a few cases where super-reduced rates are allowed for certain categories of goods, and the existence of a zero rate;
• exclusion of services offered electronically from the reduced VAT rate.

Possible derogations from European VAT rules for certain transactions

The basic provisions on value-added tax rates allow for exceptions. Derogations are sometimes granted historically when a country joins the EU. They are transitional. The parking VAT rate thus corresponds to a reduced VAT rate with a minimum of 12%. It applies to products not listed in Annex III of the VAT Directive. The aim for these countries is to eventually reach the standard rate.

VAT rates in Europe: the Europa portal

For more information on VAT rates in Europe in 2026 and every year, companies can consult the Europa portal. This is an official website of the European Union. It publishes details of the VAT rates in force for each EU member country, according to the category of services or sales of goods. The portal also provides companies with a rate history. Trade in goods and services within the European Community is subject to rules that can be complex for companies.

Which VAT rate should be applied? How do I file my VAT return? Which country should be used for which transaction, particularly for intra-Community services?

Fiscalead specializes in operational assistance for indirect taxes. We are experts in the management of VAT, excise duties and customs in Europe. If you’re in any doubt about recovering European VAT, or if you’re involved in a European trade project, our experts can help you.

If you are a customs representative or a non-EU company, contact us for more information!

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