İf you invoice clients across borders, one thing becomes clear fast: VAT isn't one number. Every country sets its own standard rate, and many run separate reduced rates for specific goods and services on top of that. Here's a quick reference to keep you oriented — and a reminder to always confirm the current rate before you invoice.
EU Standard VAT Rates: Highest to Lowest
Across the 27 EU member states, standard VAT rates currently range from 17% to 27%, with an EU-wide average sitting around 21.9%. EU rules require every member state's standard rate to be at least 15%.
- Highest: Hungary — 27%
- Also high (25%–25.5%): Finland, Croatia, Denmark, Sweden
- EU average: approximately 21.9%
- Also low (18%–19%): Malta, Cyprus, Germany
- Lowest: Luxembourg — 17%
Major Non-EU Rates to Know
- United Kingdom: 20% standard rate
- Switzerland: 8.1% — notably below the EU's own 15% minimum, since Switzerland isn't an EU member
Globally, VAT and GST systems run in roughly 175 countries, with standard rates spanning a wide range depending on the region — always check the specific country rather than assuming a "typical" global rate.
Once you know the rate, skip the manual math entirely.
CALCULATE VAT →Why Reduced Rates Exist
Most countries with a standard rate also apply one or more reduced rates — typically for essentials like food, books, medicine, and public transport. In the EU, reduced rates can't legally drop below 5%, though a small number of countries retain legacy "super-reduced" rates below that for very narrow categories, such as certain medications.
What Rate Applies When You Invoice Across Borders?
This is where it gets genuinely complex, and where a quick reference stops being enough on its own:
- For B2B services within the EU, the "reverse charge" mechanism often shifts VAT reporting to the client, not you
- For B2C sales, the rate of the customer's country often applies once you cross a sales threshold there
- Digital goods and services frequently follow different rules than physical products
If you invoice internationally on a regular basis, this is exactly the kind of detail worth confirming with an accountant familiar with cross-border VAT — the cost of getting it wrong outweighs the cost of asking.
Not sure if VAT applies to your business at all yet? Start with our guide on who needs to charge VAT.
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