VAT Rate
Category: tax
The percentage at which VAT is applied, varying by country and product type.
The VAT rate is the percentage at which Value-Added Tax is applied to goods and services, varying by country, product category, and sometimes region. EU member states set their own standard VAT rates (ranging from 17% in Luxembourg to 27% in Hungary), with reduced rates for essentials like food and books. Cross-border sellers must apply the correct rate based on the customer's country and product type.
Examples
- • A seller shipping electronics to Germany charges 19% VAT, while shipping books charges only 7% reduced rate.
- • Hungary has the EU's highest standard VAT rate at 27%, while Luxembourg has the lowest at 17%.
- • The UK standard VAT rate is 20%, with 0% on children's clothing and most food items.