In short: the UK's 20% standard rate is thoroughly ordinary. Around 175 countries run a VAT or GST system, with standard rates from Andorra's 4.5% to Hungary's world-leading 27%. The EU average works out at about 22%. The table below has every current EU rate — including the recent rises in Estonia (now 24%), Finland (25.5%), Slovakia (23%) and Romania (21%) — plus how the big non-European economies compare.
All 27 EU VAT rates (2026)
Standard and reduced rates for every member state, verified August 2026. The "Note" column flags anything that moved recently — older comparison tables (including, we admit, this site's old one) may still show the pre-rise figures.
| Country | Standard | Reduced rate(s) | Note |
|---|---|---|---|
| Austria | 20% | 10%, 13% | |
| Belgium | 21% | 6%, 12% | |
| Bulgaria | 20% | 9% | |
| Croatia | 25% | 5%, 13% | |
| Cyprus | 19% | 5%, 9% | |
| Czechia | 21% | 12% | Merged two reduced rates into one, 2024 |
| Denmark | 25% | — | The EU's only flat-rate country |
| Estonia | 24% | 9% | ↑ from 20% (2024) via 22% |
| Finland | 25.5% | 14%, 10% | ↑ from 24% in Sep 2024 |
| France | 20% | 10%, 5.5%, 2.1% | |
| Germany | 19% | 7% | |
| Greece | 24% | 13%, 6% | |
| Hungary | 27% | 18%, 5% | Highest in the world |
| Ireland | 23% | 13.5%, 9%, 4.8% | |
| Italy | 22% | 10%, 5%, 4% | |
| Latvia | 21% | 12%, 5% | |
| Lithuania | 21% | 9%, 5% | |
| Luxembourg | 17% | 14%, 8%, 3% | Lowest in the EU |
| Malta | 18% | 7%, 5% | |
| Netherlands | 21% | 9% | |
| Poland | 23% | 8%, 5% | |
| Portugal | 23% | 13%, 6% | |
| Romania | 21% | 11% | ↑ from 19% (2025), reduced rates merged |
| Slovakia | 23% | 19%, 5% | ↑ from 20% in Jan 2025 |
| Slovenia | 22% | 9.5%, 5% | |
| Spain | 21% | 10%, 4% | |
| Sweden | 25% | 12%, 6% |
The rest of Europe
| Country | Standard | Reduced rate(s) | Note |
|---|---|---|---|
| United Kingdom | 20% | 5%, 0% | Sits slightly below the EU average |
| Norway | 25% | 15%, 12% | |
| Iceland | 24% | 11% | |
| Switzerland | 8.1% | 2.6%, 3.8% | ↑ from 7.7% in Jan 2024 — still Europe's bargain |
| Andorra | 4.5% | 1% | Lowest in Europe |
| Turkey | 20% | 10%, 1% | |
| Serbia | 20% | 10% | |
| Ukraine | 20% | 14%, 7% | |
| Albania | 20% | 6% |
Beyond Europe: VAT and GST worldwide
Outside Europe it's usually called GST — same tax, different stationery. The standouts: the US as the only major economy without a national VAT, and the Gulf states proving consumption tax doesn't have to be 20%:
| Country | Rate | System | Note |
|---|---|---|---|
| United States | — | State sales taxes | No federal VAT — 0% to ~10%+ depending on state and city |
| Australia | 10% | GST | |
| New Zealand | 15% | GST | |
| Canada | 5% | GST | Provinces add up to ~9.975% sales tax on top (13–15% combined) |
| Japan | 10% | Consumption tax | 8% on food and newspapers |
| South Korea | 10% | VAT | |
| Singapore | 9% | GST | ↑ from 8% in Jan 2024 |
| India | 5–28% | GST | Slab system; most goods and services at 18% |
| South Africa | 15% | VAT | A proposed rise in 2025 was cancelled |
| Israel | 18% | VAT | ↑ from 17% in Jan 2025 |
| UAE | 5% | VAT | Introduced 2018 |
| Saudi Arabia | 15% | VAT | Tripled from 5% in 2020 |
| Brazil | ~17–19% | ICMS + federal | Complex state system mid-reform toward a dual VAT |
What this means for a UK business
- Exporting goods from Great Britain? You charge 0% — exports are zero-rated — and the customer handles import VAT on arrival. Marketplaces usually collect it for low-value consignments.
- Northern Ireland goods traders: EU VAT rules still apply to NI↔EU goods movements under the Windsor Framework, which is why you have an XI-prefixed VAT number.
- Comparing your shopping basket to a holiday abroad? At 20% the UK sits just below the EU ~22% average — your Spanish holiday beer carries 21%, the Swiss version only 8.1%.
- Working out VAT at a foreign rate? Our calculator takes any custom percentage — Germany's 19% or Finland's 25.5% both work fine.
Frequently asked questions
Which country has the highest VAT rate in the world?
Hungary, at 27% — comfortably the highest standard rate anywhere. The runners-up are Croatia, Denmark and Sweden at 25%, and since September 2024 Finland has edged into second place at 25.5%.
Which country has the lowest VAT rate in Europe?
Andorra, at just 4.5%. Within the European Union the minimum is Luxembourg at 17%, because EU law requires every member state to set a standard rate of at least 15%. Switzerland also sits low at 8.1%.
Do all countries have VAT?
Around 175 countries operate a VAT or GST system — it is the most common consumption tax on the planet. The big exception is the United States, which has no national VAT; sales taxes are set state by state, from 0% in states like Oregon to combined local rates above 10% elsewhere.
Is GST the same as VAT?
Effectively yes. Goods and Services Tax in Australia, Canada, New Zealand, India and Singapore works on exactly the same multi-stage, input-credit principle as VAT. The name changes with the country; a Canadian GST return and a UK VAT return ask essentially the same questions.
Which countries have raised their VAT rate recently?
Quite a few: Estonia went from 20% to 22% in January 2024 and on to 24%; Finland rose from 24% to 25.5% in September 2024; Slovakia from 20% to 23% in January 2025; Romania from 19% to 21%; Israel from 17% to 18% in January 2025; Singapore from 8% to 9% in January 2024; and Switzerland from 7.7% to 8.1% in January 2024.
Does the UK still follow EU VAT rules after Brexit?
No. The UK sets its own VAT rates and rules entirely — it could even go below the EU's 15% floor if it wished. The one carve-out is Northern Ireland, where goods moving between NI and the EU follow EU VAT rules under the Windsor Framework, which is why NI businesses trading goods with the EU have XI-prefixed VAT numbers.
I'm UK VAT-registered — what rate do I charge customers in other countries?
For goods exported from Great Britain, you charge 0% VAT — exports are zero-rated — and the customer deals with import VAT on arrival (or the marketplaces do it for low-value consignments). B2B services to overseas customers are usually outside the scope of UK VAT entirely. The rules for digital services sold to EU consumers differ, so check the detail before invoicing.
Why do VAT rates keep going up?
Money. Consumption taxes raise serious revenue without directly taxing wages, and governments carrying post-pandemic debt find a point or two on VAT less politically painful than income tax rises. Estonia, Slovakia and Romania all said exactly that when raising theirs between 2024 and 2026. Rate cuts, as the UK's own history shows, are rare.
Sources and review
Rates on this page were verified on 3 August 2026 against the European Commission's official VAT rates table and country announcements. Standard rates move occasionally — the review date above is the freshness guarantee, and the table is re-checked regularly (the previous version of this page taught us why that matters).
This guide is general information, not tax advice — the correct rate to charge depends on what and where you supply, so confirm with the destination country's rules before invoicing cross-border. See our disclaimer. Spot an outdated figure? Tell us and we'll fix it within days.