Google+

Newsletter signup

Email address:

EuCham - European Chamber - 2014-07 Extreme standard VAT rates in Europe

     


     
     
     



2014-07 Extreme standard VAT rates in Europe

EuCham decided to list the countries with extremely low and high standard VAT rates. European countries were ranked from the lowest to the highest using the standard VAT rate. The ranking shows that VAT rates in Andorra, Switzerland and Liechtenstein are remarkably lower than in other European states. Hungary, where the rate increased to 27% in 2012, is ranked last.

Download PDF

 

EuCham Charts
July 2014

Extreme standard VAT rates in Europe


    1

Andorra

4.5%

    2

Switzerland

8%

 

Liechtenstein

8%

    3

Luxembourg

15%

    4

Bosnia and Herzegovina

17%

    …

   

   46

Iceland

25.5%

   47

Hungary

27%


Standard VAT rates of European countries
ranked from the lowest to the highest.
47 European countries were considered.

EuCham Charts

  • Andorra has the lowest and Hungary has the highest standard VAT rate at 4.5% and 27% among 47 European countries

  • 30 out of 47 considered European countries apply standard VAT rates between 18% and 22%, while application of reduced and zero VAT rates vary significantly between the countries

  • Monaco is included in the French system and Liechtenstein is included in the Swiss system, while San Marino does not apply the VAT regime


Source: eucham.eu/charts

   

 

Detailed information

EuCham decided to list the countries with extremely low and high standard VAT rates. European countries were ranked from the lowest to the highest using the standard VAT rate.The ranking shows that VAT rates in Andorra, Switzerland and Liechtenstein are remarkably lower than in other European states. Hungary, where the rate increased to 27% in 2012, is ranked last.

However, the VAT system of a state cannot be described only by its standard rate. The application of reduced and zero VAT rates vary significantly in Europe, thus differentiating their VAT systems, even if their standard rates only deviate by a couple percentage points. A good example for this is the case of the United Kingdom, which has a standard rate of 20% while using zero rate extensively. There is an intention from the European Commission to harmonize the VAT system of EU member states, while the VAT system is still an important factor in the competition between the countries.

 

Table 1: Extreme standard VAT rates in Europe

Rank

Country

Standard VAT rate

1

Andorra

4.5%

2

Switzerland

8%

 

Liechtenstein

8%

4

Luxembourg

15%

5

Bosnia & Herzegovina

17%

6

Azerbaijan

18%

 

Cyprus

18%

 

Georgia

18%

 

Macedonia

18%

 

Malta

18%

 

Russian Federation

18%

 

Turkey

18%

13

Germany

19%

 

Montenegro

19%

15

Albania

20%

 

Armenia

20%

 

Austria

20%

 

Belarus

20%

 

Bulgaria

20%

 

Estonia

20%

 

France

20%

 

Monaco

20%

 

Moldova

20%

 

Republic of Serbia

20%

 

Slovakia

20%

 

Ukraine

20%

 

United Kingdom

20%

28

Belgium

21%

 

Czech Republic

21%

 

Latvia

21%

 

Lithuania

21%

 

Netherlands

21%

 

Spain

21%

34

Italy

22%

 

Slovenia

22%

36

Greece

23%

 

Ireland

23%

 

Poland

23%

 

Portugal

23%

40

Finland

24%

 

Romania

24%

42

Croatia

25%

 

Denmark

25%

 

Norway

25%

 

Sweden

25%

46

Iceland

25.5%

47

Hungary

27%

Sources: Ernst & Young 2014 - Worldwide VAT, GST and Sales Tax Guide; Deloitte 2014; KPMG 2014; European Commission 2014.
EuCham Research Department - Complied by Valéria Varga 2014-06-25. Reviewed by Kenneth Vekima 2014-07-16

 

 

 

 

Image 01 Image 02 Image 03 Image 04 Image 05