VAT rates by country

The full table with every rate lives on the VAT rates page, with a worked example for each country. This guide explains the shape of the world's systems, so the table reads as one story instead of forty rows.

The European pattern: standard plus reduced

The EU requires a standard rate of at least 15%, and most countries sit between 19% and 25%. Hungary is the outlier at 27%, Luxembourg the low end at 17%. Every EU country also keeps reduced rates for essentials, usually food, books, medicines and transport, and the reduced bands are the part that changes most often.

Around the EU, the neighbours follow the same shape. Switzerland charges 8.1% standard with 2.6% and 3.7% reduced, and Norway 25% with 15% and 12%. The UK sits at 20% with a 5% band and a wide zero rate.

Single rate countries

Australia (10% GST), New Zealand (15% GST), Singapore (9% GST), the UAE (5%) and Saudi Arabia (15%) keep one rate for almost everything, with a list of exempt or zero rated categories rather than reduced bands. Canada splits the difference: a 5% federal GST plus provincial HST or PST, which is why the combined total ranges from 5% to 15% depending on where the sale happens.

Which rate applies to you

Two rules decide it. First, the place of supply: where the customer is, for most B2C digital services and distance sales, and where the supplier is, for many B2B services. Second, the nature of the goods: the reduced bands only cover what the law lists, and the lists differ by country.

If you sell across borders, the OSS scheme guide covers the reporting side, and the rates table gives you the number to charge in each country.

Why rates change

Rates move with budget cycles, economic policy and, occasionally, a crisis response. Finland raised its standard rate to 25.5% in 2024, Slovakia moved to 23% in 2025, and Indonesia's PPN changes have been frequent. That is why the table carries a review date and why you should confirm before filing.