What is the EU VAT rate?

15%
The EU sets the broad VAT rules through European VAT Directives, and has set the minimum standard VAT rate at 15%. The 27 member states (plus UK) are otherwise free to set their standard VAT rates.

How does VAT work in EU?

For EU-based companies, VAT is chargeable on most sales and purchases of goods within the EU. In such cases, VAT is charged and due in the EU country where the goods are consumed by the final consumer. Likewise, VAT is charged on services at the time they are carried out in each EU country.

Is VAT an EU tax?

The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption in the European Union.

Does the European Commission have a VAT number?

The EU Commission reminds that only tax administrations have the right to issue a VAT number. If you are suspicious of unsolicited messages concerning obtaining a VAT number you are advised to check with the tax administration concerned.

Which EU country has lowest VAT?

Luxembourg
Luxembourg levies the lowest standard VAT rate at 17 percent, followed by Malta (18 percent), and Cyprus, Germany, and Romania (all at 19 percent). The EU’s average standard VAT rate is 21 percent, six percentage-points higher than the minimum standard VAT rate required by EU regulation.

Do I pay VAT on imports from EU?

At the moment, for EU transactions, VAT is generally not charged on the supply of goods between businesses from another European country by the supplier. Instead, a business recipient is generally required to charge itself VAT, known as acquisition VAT, which is typically an accounting transaction on the VAT return.

Do I charge VAT to EU customers post Brexit?

Post-Brexit, goods entering Great Britain (England, Scotland, and Wales) are considered “imports” rather than “acquisitions”. This means that the goods are subject to import VAT and duties.

Do you pay VAT on EU imports?

Can I claim back VAT on EU purchases?

You may have to pay VAT on goods and services bought for your business in an EU country. You’ll still be able to claim refunds of this VAT if your business is registered in the UK or Isle of Man. UK businesses may be required to provide a certificate of status in order to get a refund.

Is the European Commission VAT exempt?

VAT exemption on operations carried out by the European Commission. The EU institutions may, subject to certain conditions and limits, benefit from a VAT exemption on their purchases (Article 3 of the Protocol on the Privileges and Immunities (PPI) – and Article 151(1)(aa) of the VAT Directive ).

Can you check if a company is VAT registered without a VAT number?

Checking a UK VAT Number is Correct If you don’t have a valid number, then your business can not re-claim the VAT.

Which country has lowest VAT?

Switzerland, as a non-EU country, levies the lowest VAT rate of only 7.7 percent, followed by Luxembourg (17 percent), Turkey (18 percent), and Germany (19 percent). The countries with the highest VAT rates are Hungary (27 percent), and Sweden, Norway, and Denmark (all at 25 percent).

What’s the percentage of VAT in the EU?

In 2017, Value-Added Tax (VAT) accounted for 62.3 percent of consumption tax revenues in the OECD on average, making it an important source of government revenue. The European Commission (EC) recently published the latest version of their annual report on the “VAT Gap” in 2018 for the 28 Member States of the European Union at that time.

What does the EU mean by VAT gap?

The European Commission (EC) recently published the latest version of their annual report on the “VAT Gap” in 2018 for the 28 Member States of the European Union at that time. The VAT Gap refers to the difference between the VAT Total Tax Liability (VTTL) and the VAT revenue that is actually collected.

Is the VAT Directive published in all EU languages?

The VAT directive is published in all EU official languages. Most member states already had a system of VAT before joining the EU but for some countries, such as Spain, VAT was introduced with membership into the EU.

How much does compliance with VAT increase revenue?

Increased compliance with the VAT contributed to approximately 10 percent of revenue growth, which contributes to a 0.4 percent increase in overall VAT revenue in aggregate.