VAT Zero Rating

Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods and services.

It is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. It is a consumption tax because it is borne ultimately by the final consumer. It is not a charge on companies. It is charged as a percentage of price, which means that the actual tax burden is visible at each stage in the production and distribution chain. It is collected fractionally, via a system of deductions whereby taxable persons (i.e., VAT-registered businesses) can deduct from their VAT liability the amount of tax they have paid to other taxable persons on purchases for their business activities. This mechanism ensures that the tax is neutral regardless of how many transactions are involved. Below we have provided the VAT rates by country along with some examples of VAT number formats.

Country Tax Rate Example
Austria 20.00% ATU12345678
Belgium 21.00% BE123456789
Bulgaria 20.00%
Croatia 25.00%
Cyprus 18.00%
Czech Republic 21.00%
Denmark 25.00% DK12345678
Estonia 20.00%
Finland 24.00% FI12345678
France 19.60% Varies
Germany 19.00% DE123456789
Greece 23.00% EL012345678
Hungary 27.00%
Ireland 23.00% Varies
Italy 21.00% IT12345678901
Latvia 21.00%
Lithuania 21.00%
Luxembourg 15.00% LU12345678
Malta 18.00%
Netherlands 21.00% NL123456789B01
Norway 25.00% NO123456789MVA
Poland 23.00%
Portugal 23.00% PT123456789
Romania 24.00%
Slovakia (Slovak Republic) 20.00%
Slovenia 22.00%
Spain 21.00% Varies
Sweden 25.00% SE123456789001
United Kingdom 20.00% Varies