VAT rates in EU countries only grow

30.03.2012

VAT rates (VAT) in Europe are established by each country independently. The legislation of the European Union doesn't regulate uniform rates for all EU countries but only establishes the minimum limit. The minimum restriction of the standard rate should be not less than 15 %.

Since the beginning of this year some countries of Europe made correction of VAT rates in their tax economy that it is impossible to disregard.

Today the highest VAT in Europe is in Hungary where the rate was advanced from 25 % to 27 %. Since January 1st, 2012, VAT was advanced in such countries as: Ireland (to 23 %) and Cyprus (to 17 %). A number of the countries, including Poland and Italy, also intend to increase VAT rate already this year.

Using data of the European Commission, we suggest you to get acquainted with VAT rates applied in the EU states as of March 30, 2012. 

VAT rates, applying in EU states

Member States	Super Reduced Rate, %	Reduced Rate, %	Standard Rate, %
Belgium	-	6 / 12	21
Bulgaria		9	20
Czech Republic	-	14	20
Denmark	-		25
Germany	-	7	19
Estonia	-	9	20
Greece	-	6,5 / 13	23
Spain	4	8	18
France	2,1	5,5 / 7	19,6
Ireland	4,8	9 / 13,5	23
Italy	4	10	21
Cyprus	-	5 / 8	17
Latvia	-	12	22
Lithuania	-	5 / 9	21
Luxembour	3	6 / 12	15
Hungary	-	5 / 18	27
Malta	-	5 / 7	18
Netherlands	-	6	19
Austria	-	10	20
Poland		5 / 8	23
Portugal	-	6 / 13	23
Romania		5 / 9	24
Slovenia	-	8,5	20
Slovakia	-	10	20
Finland	-	9 / 13	23
Sweden	-	6 / 12	25
United Kingdom	-	5	20

Expert’s opinion

«Doubtlessly, meaningly accepting steps on increase in a rate of the VAT, the governments of the European countries intend at the expense of additional receipts in the budget to reduce a national debt (as the Czech Republic, for example) or to create stabler economy and to avoid a default in case of unforeseen crisis.

These changes will be notable for businessmen, it isn't excluded that the exit of this situation will be the acquisition of a classical offshore company registered, for example, on Belize and the British Virgin Islands. Lack of a profit tax and currency control is an additional plus».

On the basis: http://ec.europa.eu/taxation_customs/taxation/vat/

Lomakina Irina ( the director of Moscow office of Honest & Bright )