EU VAT Calculator

VAT (Value Added Tax) is a consumption tax applied to goods and services in the European Union. It's charged at each stage of production and distribution, but businesses can reclaim VAT paid on purchases (input VAT) against VAT charged on sales (output VAT). The end consumer ultimately bears the tax.

Hungary has the highest standard VAT rate in the EU at 27%. Other high-VAT countries include Denmark, Sweden, and Croatia at 25%. The lowest standard rate is Luxembourg at 17%, followed by Malta at 18%.

Reduced VAT rates are lower rates that EU countries can apply to specific categories of goods and services, such as food, books, medicine, and public transport. Each country decides which products qualify. Some countries also have 'super-reduced' rates (below 5%) for essentials.

To extract VAT from a gross price, divide by (1 + VAT rate). For example, with 20% VAT: Net = Gross ÷ 1.20. So €120 gross = €100 net + €20 VAT. Use our 'Remove VAT' mode to calculate this automatically.

Reverse charge is a mechanism where the buyer, rather than the seller, accounts for VAT. It's commonly used for cross-border B2B services within the EU and for certain domestic supplies like construction services. The buyer self-assesses and reports the VAT.

Exports from the EU to non-EU countries (like the UK post-Brexit, USA, etc.) are generally zero-rated, meaning no VAT is charged. However, the goods must physically leave the EU and you need proof of export. The importer may owe import duties and VAT in their country.

The One-Stop Shop (OSS) allows businesses selling digital services or goods to consumers across the EU to register in one country and file a single VAT return covering all EU sales. This simplifies compliance for e-commerce and digital businesses.

EU VAT rates can change, but it's relatively infrequent. Countries must give notice before changes. Recent changes include Finland increasing to 25.5% in 2024 and Estonia to 22%. Always verify current rates for business transactions.