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Standard VAT Rate
The default VAT rate applied to most goods and services in a country, ranging from 17% (Luxembourg) to 27% (Hungary) across EU member states.
The standard VAT rate (also called the normal rate) is the default percentage applied to goods and services that do not qualify for a reduced or zero rate. Under EU Directive 2006/112/EC, all member states must apply a standard rate of at least 15%. In practice, rates range from 17% in Luxembourg to 27% in Hungary.
Standard VAT Rates Across the EU (2026)
| Country | Standard Rate |
|---|---|
| Luxembourg | 17% |
| Malta | 18% |
| Cyprus / Romania / Germany | 19% |
| Austria / Bulgaria / Slovakia | 20% |
| Belgium / Czech Republic / Latvia / Lithuania / Netherlands / Spain | 21% |
| Italy / Slovenia | 22% |
| Poland / Portugal | 23% |
| Greece | 24% |
| Croatia / Denmark / Hungary / Sweden | 25% |
| Finland | 25.5% |
| Hungary | 27% |
Standard Rate for Developers
For SaaS products and digital services, the standard rate almost always applies. When determining which country's standard rate to apply, use the customer's location (not the seller's) for B2C digital services under EU place of supply rules.
Frequently asked questions
What is the EU minimum standard VAT rate?
The minimum standard VAT rate required by EU Directive 2006/112/EC is 15%. No EU member state may apply a standard rate below this threshold.
Does the standard rate apply to SaaS products?
Yes. Digital services including SaaS subscriptions, API access, and software are subject to the standard rate in the customer's country for B2C sales, or reverse charge for verified B2B sales.
Which EU country has the lowest standard VAT rate?
Luxembourg has the lowest standard VAT rate in the EU at 17%. This is followed by Malta at 18%.
Which EU country has the highest standard VAT rate?
Hungary has the highest standard VAT rate in the EU at 27%.
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Related resources
Related terms
Reduced VAT Rate
A lower VAT rate applied to specific categories of goods and services deemed socially or culturally important, such as food, books, and medical goods. EU reduced rates range from 5% to 15%.
VAT Exemption
A VAT exemption means a transaction is not subject to VAT, either without the right to deduct input VAT (exempt without credit) or with full input VAT recovery (zero-rated).
Place of Supply
The tax jurisdiction where a supply of goods or services is deemed to take place for VAT purposes, determining which country's VAT rules apply to the transaction.