VAT rates in Europe: what to know
Value added tax (VAT) is a consumption tax added to the price of most goods and services. EU rules set a minimum standard rate of 15%, but each country chooses its own. Standard rates in the EU range from 17% in Luxembourg to 27% in Hungary, and many countries add reduced rates for items such as food, books or public transport.
How to calculate VAT
To add VAT, multiply the net price by one plus the rate. A net price of €100 at 21% VAT becomes €121. To remove VAT, divide the gross price by one plus the rate: €121 ÷ 1.21 = €100. The VAT amount is the difference between the two prices.
VAT for businesses and online sellers
Businesses usually charge VAT to customers and deduct the VAT they paid on purchases. Cross-border sales within the EU follow special rules, such as the reverse charge for business customers and the One Stop Shop (OSS) for online sales to consumers. Check the rules in your country or ask an accountant before invoicing.