Lowest VAT in Europe

In 2024, VAT rates in European countries retain their paramount importance in tax systems and high influence on the economic environment of the continent. VAT is one of the most important sources of government revenue for European countries and an important factor for establishing the prices of goods and services.

Trends overviews

In recent years, a trend for stabilization of VAT rates after a series of increases caused by the economic crises of previous years has been observed in most European countries. Nevertheless, individual countries continue to adjust their tax rates with the goal of stimulating economic growth, increasing consumption, or resolving government budget problems.

VAT rates by country

The standard VAT rates in European countries in 2024 range from 17% in Luxembourg to 27% in Hungary, indicating the great divergence of tax approaches inside Europe. Other countries such as the UK, Germany, France, and Italy, have their rates between 20% to 22%.

Another tool of social support for the population, as well as a stimulus for the development of individual sectors of the economy, is the use of reduced rates of value-added tax for certain goods and services, books, medicines, food, etc. These rates can be substantially lower than the standard ones and might differ in each country.

Features of VAT in different countries

• For example, Germany has kept the standard VAT rate at 19%, one of the lowest among the major EU economies.
• Hungary has the highest standard VAT rate in Europe – 27%.
• Norway is not an EU member, but imposes a standard VAT rate of 25%, although there are reduced rates for some goods and services.
• Ireland currently has one of the world’s lowest VAT rates on books and children’s educational materials.

VAT rates directly affect business scenarios and consumer demand. In this respect, it is very important to understand the VAT structure in countries where a company operates for the purpose of optimizing its pricing and tax planning. Consumers bear the brunt of VAT implications on the selling price of goods and services. The VAT rates continue to reflect the diversity of economic strategies and social policies adopted by the different countries of Europe in 2024. Being able to understand these rates will considerably help one in smoothly running a business and personal finances in the European economy. The following is a review of the VAT rates in Europe as put into consideration by lawyers and tax consultants of Regulated United Europe.

VAT in Albania 2024

VAT rate in Albania in 2023 was 20%. The given tax rate is unchanged for the several last years since 2019.
The limit of registration as a VAT payer in Albania increased from 2 million lek to 10 million lek per year. This change has come into effect as of January 1, 2021. It is relevant to mention that the voluntary VAT registration of taxpayers is allowed, provided their minimum annual turnover is at least 5 million lek. These amendments apply to all taxpayers, including those who, irrespective of the annual turnover amount, are obliged to register for VAT—such as lawyers, accountants, engineers, architects and others—but also to the taxpayers who develop agricultural production, provided that the threshold of the annual turnover is 5 million lek.

It is also interesting to note that an enterprise in Albania with annual turnover below 8 million lek is exempt from paying income tax.

The Albanian Taxation Office in Albania is responsible for the collection and managing of all the taxes and levies related to timely payment of taxes. According to, this body is responsible for managing major sources of government revenue levied at a national level and comprises income tax, social security, corporate tax, and value-added tax.

The Albanian tax system is based on self-assessment and is continuously checked by the tax administration. These checks include all kinds of taxes imposed on the business. Where discrepancies are identified from the outcome of the tax audit, the tax authorities issue a tax assessment notice, which may be appealed within 30 calendar days.

Taxpayers have the right to submit a revised return no later than 36 months from the date when the original declaration was submitted, provided this declaration has not been previously verified by the tax authorities. Accordingly, the statute of limitations for a tax audit in Albania is five years and in certain cases, such as for the case of a new assessment due to an appeal against the previous tax assessment, can be extended up to 30 calendar days.

Transfer pricing, withholding tax, and aspects that influence corporate tax, such as deductions of expenses, will be a focal point in the tax audit.

VAT in Latvia 2024

In Latvia, value added tax consists of the following rates. The standard one is 21%, to which come all the products and services that do not fall under the reduced rates. In fact, reduced VAT rates of respectively 12% and 5% apply, with a zero rate. The rate of 12% is applied on goods and services like pharmaceutical products, medical devices for disabled people, newspapers, magazines and books – with the exception of e-books, baby food, hotel services and urban heating services. The second reduced rate of VAT amounts to 5%, and this applies to local food products, fruits, and vegetables, among other things. Intra-Community and international transport services are zero-rated.

In this respect, the following cases of registration as a VAT payer in Latvia are referred to: import and export of goods to and from Latvia, respectively; buying and selling goods in Latvia; sales of goods and services from Latvia to private customers in other European Union countries; storage of goods in Latvia. On the other hand, in the event of such entrepreneur’s exceeding the limit of €10,000 for cross-border sales of goods at a distance to private consumers in other EU countries, he shall register and pay the VAT in the buyer’s country, or he can apply a special VAT OSS procedure. The entrepreneurs from non-EU countries will have to apply for services provided by a tax representative to register VAT in Latvia.

The State Tax Service – SRS is entitled to the competence of controlling the timely payment of taxes, inclusive of VAT, in Latvia SRS. To proceed with the registration as a VAT payer in Latvia, the respective documents should be filed with the State Tax Service. It can be registered online, by email, in person at the SRS Customer Centre, or at any regional business registration office. The locally assigned VAT number, comprising the prefix “LV” and 11 digits, is allocated to the VAT payer upon the completion of a successful registration.

VAT in Andorra 2024

In Andorra, the value-added tax is applied at various rates. It is named as a general indirect tax (IGI) within the country. The standard VAT rate is 4.5% – one of the lowest in Europe. Along with that, the state has reduced and increased VAT rates:

• The 0% rate applies for specific medical and educational services, housing rentals, stamps, and investment gold.
• Food and beverages, books, magazines, newspapers attract 1% of the rate, excluding alcoholic drinks.
• Transportation services not including cable cars, particular private educational, cultural, and medical services attract the rate of 2.5%, with a similar rate to be applied on works of art, collectibles, and antiques.
• This value-added rate of 9.5% will only apply to the sector involving banking and financial services.

The minimum threshold to register as a VAT payer in Andorra depends on the type of activity. Thus, for entrepreneurs or professionals, the threshold is €40,000 per year for annual sales of goods and services. Agricultural activities have a threshold of €150,000 yearly.

It is the State Tax Service of the country which is entitled and responsible for regulating timely tax payment in Andorra, including value-added tax. It is in charge of registration of payers of value-added tax and follow-up of tax obligations.

VAT in Liechtenstein 2024

In Liechtenstein, VAT (imputed as general indirect tax) is ruled by the laws of Switzerland with which Liechtenstein has close economic ties. As of January 1, 2024, the total VAT rate is 8.1% (previously 7.7%). The reduced VAT rate is 2.6% (previously 2.5%) for food, medicines, newspapers, magazines and books. Further, the accommodation services attract a rate of 3.7%.

Healthcare and social security, education, banking, and insurance services are among the services excluded from charging VAT.

Organizations that are in business and whose annual turnover is below 100,000 Swiss francs in a financial year may be excluded from charging VAT. The rule used is irrespective of the legal form of an activity.

The country’s tax administration based on Swiss tax legislation is the main governing body for the timely payment of the taxes, including the value-added tax, in Liechtenstein.

VAT in Lithuania 2024

Following are the rates of value-added taxes that will be levied in Lithuania in the year 2024:

1. The standard rate of VAT is 21%.
2. Following are the rates of reduced VAT:

1. • 9% for residential energy, books and e-books, domestic passenger transportation, hotel services and accommodation.
   • 5% for medical products, pharmaceuticals, newspapers and magazines also in electronic form, as well as for fruits, berries and vegetables.

1. The zero rate embraces particular types of goods and services; among them are exports and intra-community dispatchings of goods.

The minimum threshold to be registered as a VAT payer in Lithuania is €55,000. There is no minimum threshold for foreign entrepreneurs if they perform the activities taxable by the law.

State Tax Inspectorate, under the Ministry of Finance regulates and controls on-time payment of taxes also of the value-added tax in Lithuania.

VAT in Austria 2024

In Austria, the following value-added tax (VAT) rates apply in 2024

• Basic VAT rate: 20%.
• Reduced VAT rates: 10% and 13%.
• That is to say, 10% applies to the leasing of housing, leasing of rooms and bedrooms, furnished, and transportation of passengers on land, water, and air within the country; the rate on all the aforementioned is 13%. Under the 13% rate are services that include the supply of animals, plants, firewood, etc., and the income derived from the activity of artists and sports events.

However, it does not indicate the minimum threshold for registration as a VAT payer, being the usual pan-European standard.

The body in charge of regulating tax payments in Austria includes VAT is the Federal Ministry of Finance.

VAT in Luxembourg 2024

Luxembourg has the following value-added tax (VAT) rates effective from 1 January 2024:

• Basic VAT rate: 17% percent.
• VAT reduced rates: 14%, 8%, and 3%.

Threshold for obligatory registration as a VAT payer – € 35,000. For non-residents the threshold is not provided.

State body providing the supervision on the issues of tax payments in Luxembourg, including those related to the value added tax – is the Administration for Registration, Domains and VAT (Administration de l’enregistrement, des Domaines et de la TVA), being part of the Ministry of Finance.

VAT in Malta 2024

In Malta, starting from 1 January 2024, the respective value-added tax rates are:

• Basic VAT rate is 18%.
• A new reduced rate of 12% comes in force for certain services, such as pleasure yacht rentals, certain medical services, securities custody services, and certain loan management and loan guarantee services.
• Exist other reduced VAT rates of 7%, and 5%, as well as some zero-rated deliveries.

Minimum registration threshold for VAT payers in Malta is unspecified.

The exact public authority, which governs the taxes-based regulations such as VAT within Malta, is Tax Authorities.

VAT in Belgium 2024

Belgium, the following value-added tax (VAT) rates are valid in 2024:

• Basic VAT rate: 21%.
• Reduced VAT rates: 12%, 6%, and 0%.

The threshold for the obligation to register as a VAT payer is at least €25,000 in domestic transactions. It is required that non-residents be registered immediately; no minimum threshold has been established.

The Ministry of Finance is the State body governing the payment of taxes in Belgium, including VAT.

VAT in Bosnia and Herzegovina 2024

In Bosnia and Herzegovina, the standard rate of Value Added Tax is 17%. There are no reduced rates of VAT. Any person who makes deliveries of goods and services that are taxable and exceed or are likely to exceed the threshold of 50,000 convertible mark is obliged to register as a VAT payer. Exports of goods are zero-rated. The country’s tax administration is a State body that regulates the payment of taxes, including VAT, in Bosnia and Herzegovina.

VAT in Montenegro 2024

Below are the current VAT rates in Montenegro for 2024:

• The standard VAT rate is 21%.
• The reduced VAT rate – 7%, which covers goods like bread, milk, books, medicines, computers.
• The zero VAT rate refers to the export of goods and supplies of gasoline for ships in international traffic.

In Montenegro, registration as a VAT payer is mandatory if the entity sells more than a 30,000 euros turnover within a consecutive 12-month period. On the other hand, voluntarily, a person might get registered even if he has not reached that threshold. Such a company can’t cancel its registration for three years after being registered.

Taxes in Montenegro are controlled and regulated by the Tax Administration of Montenegro.

VAT in Bulgaria 2024

Basic VAT rates in Bulgaria in 2024 are the following:

• Basic VAT rate: 20%, applies to most goods and services.
• Reduced rate: 9%, used for services in the hotel business and rental of real estate.
• 0% rate: International transport services, certain other special cases, in particular, export of goods.

In Bulgaria, the threshold for registration as a VAT payer is 50,000 BGN, approximately 25,000 euros. It needs to register itself as a VAT payer where the annual turnover of the company has exceeded that threshold.

In Bulgaria, even taxes are covered under governing laws such as the Law on Value Added Tax, among others. Besides, there is regulation through different tax authorities concerned. The tax policy within the country affects residents and non-residents, legal entities and individuals, and individual entrepreneurs.

Besides that, there are other types of taxes in Bulgaria, like corporate income tax (10%), personal income tax (the same 10%), social contributions, and property taxes in their different forms. All that put together can create a quite diverse multi-level tax system.

VAT in the Netherlands 2024

In the Netherlands, the following value-added tax rates are set for 2024:

1. Basic VAT rate: 21%. This is the rate for practically everything sold in the country.
2. Reduced VAT rate: 9%. Applied for some categories of goods and services; for instance, in some cases, this might refer to the provision of services in hotels or, in general, foodstuffs.
3. 0% VAT rate: Applies only to specific cases-for instance, in the event of shipping abroad outside the country.

According to the Dutch, firms are obliged to register as VAT payers if their annual turnover exceeds a certain threshold. However, specific information in this regard-concerning the minimum threshold for being registered as a VAT payer for the year 2024-is not available from this source.

According to the Dutch Tax service, it should keep a record and provide control for timely payment of taxes including VAT. The reports are submitted regularly, usually monthly or quarterly, and may get fined in case of non-compliance with a deadline date of submitting reports or paying a tax.

VAT in Croatia 2024

Croatia uses multiple VAT rates, which generally corresponds to the practice of the European Union countries. As of my last update, the main bids look as follows:

1. Standard VAT Rate: This is the general VAT rate applied in Croatia at a rate of 25%. Actually, the bid contains most of the products and services.
2. Reduced rates: Croatia also foresees the application of reduced VAT rates:

1. • The 13% rate applies to certain products and services, such as certain food products, water supply, and certain tourism and hotel services.
   • The 5% rate** applies to certain books, medical devices, and other goods and services of a specific category.

Minimum Threshold for Registration as a VAT Payer

For small businesses and private entrepreneurs, the possibility of registration is as important as the threshold amount. This threshold in Croatia is:

• 300,000 Croatian kuna (around 40,000 euros). The company will be obliged to be registered as a VAT payer if the turnover during the last 12 months exceeded the above-mentioned amount.

Regulation and Control Over The Payment of Taxes

The Ministry of Finance and its department, the Tax Administration, is a State body in Croatia that is tasked to govern and monitor on time any type of tax payments, inclusive of VAT. These bodies monitor not only compliance with laws but provide information and support to taxpayers.

Value-added tax is an important constituent of the Croatian tax system. Appreciation of the current VAT rate, including the conditions necessary for VAT registration, will help entrepreneurs conduct their business in conformity with the laws in the land. It will be advisable for you always to consult a professional tax consultant or lawyer for updated and precise information and to handle your tax obligations.

VAT in Norway 2024

Value added tax (VAT) is a very important constituent of the Norwegian tax system. A number of VAT rates may be distinguished in Norway, determined with a view to satisfying different economic needs:

1. Standard VAT rate: For Norway, it is 25% as of the last update. This is the total bid for most goods and services.
2. Reduced VAT rates:
3. • The 15% rate refers to food products
   • The 12% rate applies to services related to passenger transport, hotel accommodation, film production, access to cultural and sports events, etc.

Minimum Threshold for Registering as a VAT Payer

Also, Norway has a threshold for compulsory registration as a VAT payer. The threshold is defined as:

• 50,000 Norwegian kroner (about 5,000 euros). This threshold means that every company whose annual turnover is above this amount must be registered as a VAT payer.

Regulation and Control Over The Payment of Taxes

The relevant state body of Norway is the Tax Office Skatteetaten, which is called to regulate taxes and levy value-added tax. It does not only control the observance of the law on taxes and their collection but also renders informational support to taxpayers. The Tax Office is responsible for the registration of companies as VAT payers, too.

Understanding VAT rates and the requirements for registering as a VAT payer is important for anyone doing business in Norway. The correct application of these rates and compliance with registration requirements help to avoid legal problems and ensure compliance with national tax legislation. It is always recommended to contact qualified tax consultants for up-to-date and detailed information.

VAT in Cyprus 2024

In Cyprus, as in most European Union member-states, several diverse VAT rates reflect a number of classes of goods and services:

1. Standard VAT rate: According to the latest data available, the standard VAT rate is 19% in Cyprus. All other products and services come under this broad category.
2. Reduced VAT rates:

1. • The 9% rate applies to hotel services and some other areas.
   • The 5% rate is mainly applied to certain food products, medical services, and medicines.
2. Special VAT rate: There is also a special rate of 0% applied to certain product groups, including exported goods.

Minimum Threshold for Registering as a VAT Payer

Cyprus has a certain annual turnover threshold for mandatory registration as a VAT payer:

• The threshold is 15,600 euros. What this means is that if the annual turnover from the business is above the said amount, the company is considered liable to register as a payer of value-added tax.

The main body responsible for regulating taxes and collecting VAT in Cyprus is the Department of Taxation and Customs. The functions of this department are not only to observe the conformity of tax laws and the collection of taxes but also to provide information support for taxpayers and to monitor the process of registration as VAT payers.

Understanding how much value-added tax rates are and how the process of registration as a value-added tax-payer is performed is another aspect of running a business successfully in Cyprus. All these rates should be properly accounted for and followed as required by the tax law to avoid legal and financial issues. Qualified tax consultants can be contacted for updated and detailed information.

VAT in Poland 2024

The Republic of Poland, being a member of the European Union, applies a VAT system that includes different rates for various categories of goods and services, namely:

1. Standard VAT rate: According to the latest data, the standard VAT rate in Poland amounts to 23%. It is the basic rate applied to most goods and services.
2. Reduced VAT rates:

1. • 8% rate: for certain foodstuffs, magazines, and certain medical products and services.
   • 5% rate: applied to foodstuffs, books—including the electronic book-form, and periodicals.
   • Super-reduced VAT rate: there might be a super-reduced rate at 0% for basic commodities, such as bread and milk.

For entrepreneurs and companies operating in Poland, there is a certain turnover threshold beyond which the obligation to register as a VAT payer is incurred: the threshold amounts to 200,000 zlotys – approx. 50,000 euros. Where over the financial year the company’s annual turnover will have been higher than the amount mentioned above, the company needs to be registered as a VAT payer.

Regulation and Control Over The Payment of Taxes

The main regulation of taxes and VAT collection in Poland is provided by the leading state body the Ministry of Finance and its subdivision the Tax Service (Krajowa Administracja Skarbowa). These bodies not only monitor compliance with tax legislation but also provide the necessary information to taxpayers, as well as control the process of registration of VAT payers.

Understanding the VAT rates and the very logic of the procedure for registration as a VAT payer is important for successful business in Poland. This gives an opportunity for companies and entrepreneurs to carry out their activities in full accordance with local legislative enactments and to avoid various problems with the law. In any case, it is recommended to consult with professional tax consultants who can provide updated and accurate information on the subject.

VAT in Czech Republic 2024

VAT is an integral part of the taxation system of the Czech Republic. The presence of several different VAT rates allows you to adjust the taxation depending on the type of goods and services:

1. Standard VAT rate: In the Czech Republic, it is 21%. This rate covers virtually all products and services:
2. Reduced VAT rates:

1. • The 15% rate generally applies to some products of food, books, periodicals, and certain health services.
   • The 10% rate refers, for example, to drugs, baby food, and books.

Minimum Limit for Registration as a VAT Payer

The Czech Republic provides for a threshold for compulsory registration as a VAT payer:

• The threshold is 1,000,000 CZK (about 40,000 euros). This means that those companies whose annual turnover exceeds this amount should be registered as VAT payers.

The authority responsible for regulating taxes and collecting Value Added Tax in the Czech Republic is the Financial Authority of the Czech Republic (Finanční správa České republiky). This body controls, inter alia, observance of tax laws, processing of tax returns, and taking care of the tax collection, too. The Financial Department also informs and advises the taxpayers.

Being aware of the VAT rate and conditions of being registered as a payer is important for a company incorporated in the Czech Republic. This is because such conditions will not only help the companies avoid legal problems but also put them in compliance with the local tax law. Consult regularly updated information and advice from professional tax consultants.

VAT in Portugal 2024

VAT is an essential element of the taxation system in Portugal. There are several types of VAT rates that can be applied to different categories of goods and services, namely:

1. Standard VAT rate: The standard VAT rate in Portugal amounts to 23%. The majority of goods and services are subject to this rate.
2. Reduced VAT rates:
3. • The 13% rate applies to some food products, hotel services, and restaurants.
   • The 6% rate applies principally to medical products and services, books, and some food products.

Minimum Threshold for Registration as a VAT Payer

Portugal establishes a threshold above which registration as a VAT payer is compulsory:

• The threshold is 10,000 euros. It means here that the company, once the annual turnover exceeds that amount, has to be registered as a VAT payer.

This explains that the regulation and collection of VAT in Portugal are under the body called the Tax and Customs Authority of Portugal (Autoridade Tributária e Aduaneira). The body has been mandated to monitor compliance with the laws on taxes, process the tax return, and ensure that the taxes are paid. It also offers information support to taxpayers.

Familiarization with the rates and the VAT registration process is a plus when doing business in Portugal. It helps companies comply with the local tax law and avoid possible legal repercussions or issues. Such information and advice are much better provided by professional tax consultants.

VAT in Denmark 2024

Denmark is a country-member of the European Union, and because of that, this country has implemented the VAT system that is a crucial part of tax structure. In Denmark, there is a flat VAT rate:

1. The standard VAT rate is 25%. This is one of the highest VAT rates in the European Union and applies to most goods and services.

A peculiar feature of this country is that the reduced or zero VAT rates apply exclusively to certain goods or services. In this respect, Denmark is substantially different from other European countries.

Minimum Threshold for Registration as a VAT Payer

As for the obligatory registration as a VAT payer, the following threshold has been established for entrepreneurs and companies of Denmark:

• The threshold is 50,000 DKK – about 6,700 euros. If the company’s annual turnover exceeds this amount, it has to be registered as a VAT payer.

The state body that is in charge of regulating taxes and collecting VAT within Denmark is the Danish Tax Administration (Skattestyrelsen). It does monitoring with regard to compliance with tax laws, processes tax returns, and secures taxes. Besides this, the institution offers information and support for taxpayers in conducting their business in compliance with the requirements of the country’s tax legislation.

Any person doing business in Denmark will need to get acquainted with the local VAT rates and their requirements for registration as a VAT payer. In this way, there will be compliance with the local laws concerning taxes, thus saving oneself from many legal problems. For further information and advice, we recommend addressing qualified tax consultants.

VAT in Romania 2024

Romania, being an EU member state, applies multiple different VAT rates for various categories of goods and services:

1. Standard VAT rate: Basic VAT rate in Romania is 19%. This rate is applied to most of the products and services.
2. Reduced VAT rates:

1. • 9% rate: This applies to a number of foodstuffs, products used for medical purposes, services provided by hotels and also water supplies.
   • 5% rate: This is applied to books, newspapers, and magazines, access to sports events, and the sale of certain kinds of real estate.

Minimum Threshold for Registration as a VAT Payer

Romania has also established a threshold for compulsory registration as a VAT payer:

• The threshold is 300,000 Romanian lei – about 65,000 euros. When the annual company’s turnover exceeds this amount, it must be registered as a VAT payer accordingly.

Regulation and Control Over The Payment of Taxes

The national body dealing with the regulation and collection of taxes, VAT included, in Romania is the National Agency for Tax Administration – Agenția Națională de Administrare Fiscală – ANAF. This body does not only control compliance with tax obligations but also ensures tax collection and provides information support to taxpayers.

Knowledge of the existing VAT rates and rules of registration as a VAT payer is an indispensable element of successful business in Romania; it allows a company to follow all the regulations of the local tax law and avoid problems with the law. We advise readers to address professional tax consultants for more detailed information and advice. We will be happy to help you with all the questions.

VAT in Estonia 2024

Hassle-free Estonian VAT registration. As a member state of the European Union, Estonia applies various VAT rates depending on the category to which goods and services belong:

1. The standard VAT rate: Estonian standard VAT rate is 20%. This is the general rate which covers most goods and services.
2. Reduced VAT rates:

• The 9% rate is applied to some categories of goods and services, including medical supplies, books, and hotel services.

1. Special VAT rate: Besides that, there is a special 0% for a number of other types of transactions, including the export of goods.

Minimum Threshold for Registering as a VAT Payer

Estonia defines the threshold for mandatory registration as a VAT payer:

• The threshold is 40,000 euros. Starting from this amount, the annual turnover of companies should be considered as surpassing the amount according to the law and further register as a VAT payer.

Regulation and Control Over The Payment of Taxes

The state body responsible for regulating taxes and collecting VAT in Estonia is the Estonian Tax and Customs Administration (Maksu— jaTolliamet). This body not only regulates the observance of tax laws and collects taxes but also informs taxpayers.

Understanding VAT rates and also the registration procedure will help a business enterprise to conduct its operation efficiently in Estonia, thereby staying out of all legal issues and also following the obligations required for local taxation. For more accurate and updated information, we suggest contacting professional tax consultants.

VAT in Finland 2024

Finland is part of the European Union; therefore, its system has different rates depending on the categories to which goods and services belong:

1. Standard VAT rate: In Finland, a generally applied VAT rate is 24%. This is the total rate, which has been applied to most products and services.
2. Reduced VAT rates:

1. • The 14% rate applied to some foodstuffs and fodder for animals.
   • The 10% rate is payable for medical services, books, cultural and sports events and passenger transport services.

Threshold above Which Registration is Obligatory as a VAT Payer

• The threshold is 15,000 euros. If the company’s annual turnover exceeds the amount, it shall register as a VAT payer.

Regulation and Control Over The Payment of Taxes

The state body in charge of regulating taxes and collecting VAT in Finland is the Finnish Tax Administration (VeroSkatt). This body oversees observance of the tax laws, processes tax returns, and secures receipt of taxes. It also gives information and support to taxpayers.

The VAT rates and conditions for registration as a VAT payer are the elements of every business in Finland, but such assistance may allow a company to avoid any legal problems and ensure national tax legislation observance. For further information or detailed advice on these matters, please contact qualified experts in taxation.

The North Macedonian VAT system is both complex and multirate, reflecting the different categories of goods and services. These follow:

1. Standard VAT rate: According to the latest data, the standard VAT rate for North Macedonia is 18%. This is the basic rate, applied to most goods and services.
2. Reduced VAT rate:

1. • The 5% rate applies to some products, such as some food items, books, medical devices, and services.

Threshold for Obligatory Registration as a VAT Payer

North Macedonia also has a threshold related to obligatory registration as a VAT payer. The following describes what it looks like:

• Of 1,000,000 Macedonian denars, approximately 16,000 euros, if the annual turnover of the firm is more than this amount, it should be registered as a VAT payer.

Regulation and Control Over The Payment of Taxes

The main state body responsible for the regulation of taxes and the collection of VAT in North Macedonia is the Revenue and Tax Office (Public Revenue Office – PRO). This body is supposed to monitor compliance with tax laws, process tax returns, and ensure that the collection of taxes is performed. It is also in charge of informing and advising the taxpayers.

Understanding the VAT rates and registration requirements in North Macedonia is an important aspect in running a successful business, as it can help companies stay in compliance with local tax laws and not develop any legal problems. It is recommended to contact professional tax consultants for updated information and advice.

VAT in Serbia 2024

The following rates make part of the VAT system in Serbia, depending on the type of goods and services:

1. Standard VAT rate: The standard VAT rate is 20%, which applies to most products and services.
2. Reduced VAT rates:

1. • The 10% rate is applied to other goods and services, such as basic foodstuffs, books, medical devices and services, travel services, etc.

Minimum Threshold for Mandatory Registration as a VAT Payer
Serbia provides for a threshold from which registration as a VAT payer is obligatory:

• The threshold is 8 million dinars or approximately 68,000 euros. Where the annual turnover of a company exceeds this threshold, it becomes obliged to register as a VAT payer.

Regulation and Control Over The Payment of Taxes
The main state body of Serbia – responsible for regulating taxes and collecting VAT – is called Serbian Tax Authority (Poreska Uprava Srbije). The aforementioned body is in charge not only of the observation of compliance with tax legislation but also of securing tax collection and information support for taxpayers.

VAT in France 2024

France, being one of the founding countries of the European Union, allows a multi-level VAT system in which different rates could be imposed on different goods and services.

1. Standard VAT rate: The standard VAT rate applicable is 20% in France. This is the mere basic rate, which is levied on most goods and services.
2. Reduced VAT rates:

1. • The 10% rate applies to restaurant services, transportation, renovated residential buildings, and some medical devices.
   • The rate of 5.5% is applied to food, books, some energy products, and equipment for people with disabilities.
   • A special rate of 2.1% applies to certain pharmaceutical products and presses.

Minimum Threshold for Registering as a VAT Payer
France also has a threshold for mandatory registration as a VAT payer:

• There is no threshold for local companies: all companies engaged in turnover shall be obliged to register as VAT payers.
• There is no minimum threshold for foreign companies. They must be registered as a VAT payer from the first transaction that is taxable in France.

Regulation and Control Over The Payment of Taxes
The central authority responsible for general taxation and Value-Added Tax is the General Directorate of Finance-Finances publiques-DGFIP. This body acts to ensure observance of the tax law, processes tax returns, is responsible for collecting taxes, and provides information support to taxpayers.

It is, therefore, important for any company operating in France or with French counterparts that it understands what the VAT rates are and whether a business should register generally as a VAT payer. Thus, you could avoid problems with the law and ensure conformation with the local tax legislation. We strongly recommend consulting professional tax consultants for detailed and updated information and advice.

The VAT system in Slovakia is according to pan-European standards and contains several different rates:

1. Standard VAT rate: In Slovakia, the standard VAT rate is 20%. This is the basic rate that applies to most products and services.
2. Reduced VAT rate:

1. • The 10% rate applies to certain products, such as certain medical products, books, and magazines.

Minimum Threshold for Registering as a VAT Payer
Slovakia also sets a threshold for mandatory registration as a VAT payer:

• The threshold is 49,790 euros. In cases of annual turnover exceeding this limit, the firm should register as a VAT payer.

Regulation and Control Over The Payment of Taxes
The state body tasked with the regulation of taxes and collection of VAT within Slovakia is the Financial Administration of the Slovak Republic (Finančnné riaditeľstvo Slovenskej republiky). In addition to watching observance of the laws concerning taxes, this body also processes tax returns for the assurance of taxes. Information and support are also afforded to taxpayers through this body.

Understanding VAT rates and their respective registration requirements is relevant for being a compliant VAT payer while doing business in Slovakia. It will help the business entities to get along with the local tax laws and avoid any legal issues in this matter. For more detailed and updated information and advice, it is advisable to consider consulting professional tax consultants.

VAT in Slovenia 2024

The variety of goods and services is reflected in several VAT rates of the Slovenian VAT system:

1. Standard VAT rate: the standard VAT rate applied in Slovenia amounts to 22%. This is a basic rate, under which most goods and services fall.
2. Reduced VAT rate:
3. The rate of 9.5% is applied to certain products, like food products, books, medical devices, hotel services, and some other categories of goods and services.

Minimum Threshold for Registering as a VAT Payer
Slovenia also sets out the threshold for obligatory registration as a VAT payer:

• It equals 50,000 euros. This means that if a company’s annual turnover exceeds this amount, such a company is obliged to register as a VAT payer.

Regulation and Control Over The Payment of Taxes
The State body responsible for regulating and controlling taxes and VAT collection in Slovenia is the Financial Administration of the Republic of Slovenia (Finančnauprava Republike Slovenije – FURS). This body not only monitors compliance with tax laws, but also processes tax returns, as well as ensures tax collection. It also provides information support to taxpayers.

It is essential to understand VAT rates and the requirements for one’s registration as a VAT payer in order to run a successful business in Slovenia. This will help the businesses operate within the local legislation and avoid possible problems with the law. For more detailed information and professional advice, we suggest contacting a tax consulting company.

VAT in Germany 2024

Germany is one of the most leading economies of the European Union, introducing various rates into its VAT system. Among them are:

1. Standard VAT rate: The standard VAT rate in Germany is 19%. Most goods and services are taxed with this rate.
2. Reduced VAT rate:

1. • 7% rate, which includes, among others, the food, books, newspapers, and magazines, as well as passenger transportation services.

Minimum Threshold for Registration Obligation of a VAT Payer

According to German regulations, there is also a threshold which is used for the mandatory registration as a VAT payer:

• The threshold is 22,000 euros. This means that if the company’s annual turnover in the previous calendar year exceeds this amount, it is required to register as a VAT payer.

Regulation and Control Over The Payment of Taxes

The main state body responsible for regulating taxes and collecting VAT in Germany is the Federal Central Tax Office (Bundeszentralamt für Steuern — BZSt) along with the local tax offices. Authorities monitor the observance of tax laws, process tax returns, and perform collection services. They also provide information support to taxpayers.

The knowledge of the VAT rate and the rules of registration as a VAT payer will be quite important for the company while doing business in Germany. It will allow it to follow all the requirements of the local tax law and not create legal problems for itself. Certainly, one would always strongly recommend periodically contacting qualified tax consultants for more details regarding information and advice.

VAT in Spain 2024

Spain, as the state of the European Union, has a multi-level VAT system. The different levels are mentioned below: Following rates consist of:

1. Standard VAT rate: In Spain, a standard VAT rate is 21%. This is the total rate, applied to most products and services.
2. Reduced VAT rates:

1. • • The 10% rate applies to some food products, medical devices, and some types of housing.
   • The super-reduced rate of 4% refers to basic food items, books, newspapers and magazines, and also to medical apparatus and appliances for people with disabilities.

Minimum Thresholds for Registration as a VAT Payer

Spain has introduced a threshold for the compulsory registration as a VAT payer:

• Threshold is 85,000 euros. In practice, it means that in case of exceeding this amount of company’s annual turnover, the company should be registered as a VAT payer.

The main public body in charge of the regulation of taxes and collection of VAT in Spain is the Spanish Tax Agency (Agencia Tributaria). This body not only watches compliance with tax laws but also processes tax returns, as well as provides for tax collection. The Agency also informs the taxpayers.

Understanding Spanish VAT rates and the conditions to register as a VAT payer is crucial for running a successful business in Spain. It helps entrepreneurs to work in accordance with tax legislation and avoid possible legal consequences. For more detailed information and consultation, we highly recommend addressing professional tax consultants.

VAT in Greece 2024

Greece, being a member of the European Union, has different VAT rates applied to goods and services according to the group they fit into, namely:

1. Standard VAT Rate: The standard VAT rate in Greece is 24%. Most of the products and services are subjected to this very rate.
2. Reduced VAT rates:

1. • The 13% rate is applied to certain food items, energy, water, and certain services.
   • The 6% rate covers medicines, books, and theater tickets.

Minimum Threshold for Registration as a VAT Payer

Greece provides also the limit with regard to the obligation to register as a VAT payer:

• The threshold is 10,000 euros. If the annual turnover of the company exceeds this amount, then it needs to be registered as a VAT payer.

Regulation and Control Over The Payment of Taxes

The state body which in Greece regulates taxes and collects VAT is the Tax Office (αρχή Εσόδων). This body follows up on proper compliance with tax obligations, processes tax returns, and undertakes collection. Apart from that, it informs and supports the taxpayers.

Clearly understanding the existing VAT rates and the conditions under which registration is compulsory as a VAT payer forms the basis of doing business in Greece, which will help you to act in accordance with national tax legislation and avoid various problems on this issue. For more information, please consult with professional tax consultants.

VAT in Sweden 2024

Sweden, as a country of the European Union, applies a VAT system that includes different rates depending on the category of goods and services:

1. Standard VAT rate: In Sweden, the standard VAT rate amounts to 25%. This is the total rate, applied to most products and services.
2. Reduced VAT rates:

1. • The 12% rate is applied to food and restaurants.
   • The 6% rate refers to books, newspapers, concerts, and passenger transport.

Minimum Threshold for Registering as a VAT Payer

The threshold for mandatory registration as a VAT payer in Sweden is as follows:

• It is SEK 30,000 or about 2,900 euros. If the company’s annual turnover exceeds this amount, it will have to be registered as a VAT payer.

Regulation and Control Over The Payment of Taxes

The state body which regulates taxes and collects VAT in Sweden is the Swedish Taxation Office (Skatteverket). This body is monitoring the compliance with tax obligations, processes tax returns, and ensuring that taxes are collected. This body also performs information support to the taxpayers.

In that respect, understanding the consideration of VAT rates and requirements of registration in Sweden is quintessential for running a business profitably. This would support businesses in keeping their obligations concerning national tax legislation and staying away from legal issues. It is desirable to consult professional tax consultants for the latest information and advice.

VAT in Hungary 2024

Hungary possesses one of the highest standard VAT rates in the European Union and also offers reduced rates for certain categories of goods and services:

1. Standard VAT rate: The standard VAT rate in Hungary amounts to 27%. This is the basic rate, applied to most goods and services.
2. Reduced VAT rates:

1. • The 18% rate applies to certain foodstuffs and to services in the hotel business, too.
   • The 5% rate applies to medicines, medical devices, and books.

Minimum Threshold for VAT-Payer Registration

Hungary also has a threshold for mandatory registration as a VAT payer:

• The threshold is 8 million HUF – about 24,000 euros. If the annual turnover of the company exceeds the above-mentioned amount, the company shall be obliged to register as a VAT payer.

The Hungarian Tax and Customs Administration (NAV-Nemzeti Adó – és Vámhivatal) is the state body in charge of administering taxes and collecting VAT in Hungary. It observes observance, processes tax returns, and collects taxes. It also provides information and support to the taxpayers.

Knowledge of the applicable VAT rates and registration requirements in Hungary is, therefore, one of the cardinal aspects of running a successful business in compliance with local taxing statute and avoiding legal complications. We recommend contacting professional tax consultants for updated information and advice.

VAT in Iceland 2024

Iceland, even though not a part of the European Union, also has a properly designed VAT mechanism, including various groupings of goods and services in different ratings:

1. Standard VAT Rate: The VAT rate in Iceland is 24%. This is charged for many products and services.
2. Reduced VAT rate:

1. • The 11% rate applies to some groups of goods and services, including food, hotels, books, and magazines.

Threshold Limit for Registration as a VAT Payer
Iceland also established the threshold limit for obligatory registration as a VAT payer:

• The threshold is 2 million Icelandic kronor (around 15,000 euros). Companies whose annual turnover exceeds this limit have an obligation to register themselves as a VAT payer.

Regulation and Control Over The Payment of Taxes
The body responsible for handling tax affairs in Iceland is the Directorate of Tax Services of Iceland (Ríkisskattstjóri). It checks observance of tax laws, processes tax returns, and is responsible for the collection of taxes. Besides that, it provides necessary information and services to taxpayers.

The relevant Icelandic VAT rates and threshold above which a company becomes obliged to register as a value-added tax payer are quite important to be taken into consideration when doing business in Iceland. Compliance with these requirements supports companies in avoiding legal problems and maintaining compliance with local tax legislation. For more recent information and consultations, we highly recommend contacting professional tax advisors.

VAT in Switzerland 2024

Switzerland, though not a member of the European Union, also has its VAT system, which differs from most European VAT systems:

1. Standard VAT rate: The standard VAT rate in Switzerland is 7.7%. This is among the lowest standard VAT rates in Europe and is applicable to the majority of goods and services.
2. Reduced VAT rate:

1. • This rate applies to the hotel service sector: 3.7%
   • A special rate of 2.5% is applied when certain products are involved, such as food, books, newspapers, and medicines.

Minimum Threshold for Registering as a VAT Payer
Switzerland has a threshold amount above which registration as a VAT payer becomes mandatory:

• The threshold has been set at 100,000 Swiss francs, or about 92,000 euros: Any company whose annual turnover exceeds this figure is obliged to register as a VAT payer.

Regulation and Control Over The Payment of Taxes
The state body responsible for regulating the taxes and collecting VAT within Switzerland is the Federal Office of Taxes (Eidgenössische Steuerverwaltung – ESTV). In fact, this body not only watches over compliance with tax laws but also deals with the processing of tax returns, as well as ensures that tax collections are performed. This office also includes information and support for the taxpayer.

Understanding the rates of value-added tax and the process of VAT payer registration is just one of the keys to successful business in Switzerland: this way, you will follow the local tax legislation and avoid problems with the law. We also recommend contacting qualified tax consultants on a regular basis for more detailed information and consultation.
Lawyers from Regulated United Europe will assist you with company registration in Switzerland.

VAT in Ireland 2024

Ireland, being a European Union member state, has several VAT rates to indicate the inclusion of different categories of goods and services:

1. Standard VAT rate: The standard VAT rate applicable in Ireland is 23%. Most products and services are subject to this rate.
2. Reduced VAT rates:

1. • The 13.5% rate covers specific services and goods, including construction work, repair services, cleaning, and agricultural services.
   • There is a special rate of 9% applied to electronic newspapers and journals, and on the supply of hotel and restaurant services.
   • This is taxed at 4.8%.
   • Zero VAT rate: Goods exported, books, children’s clothes and shoes, and certain food items fall in the ambit of the zero rate.

Minimum Threshold for Registering as a VAT Payer
Ireland has the following thresholds for registering as a VAT payer:

• The threshold for businesses providing services is 37,500 euros.
• The threshold for companies selling goods is 75,000 euros.

Regulation and Control Over The Payment of Taxes
The Irish Revenue Commissioners are the government body responsible for the regulation of taxes and VAT collection in Ireland. This body carries out functions such as monitoring compliance of tax laws, processing of tax returns, and collection of taxes. It also provides information support to taxpayers.

Understanding VAT rates and the registration procedure as a VAT payer are crucial for any business in Ireland. This will enable your business to operate in compliance with local tax laws and avoid unexpected legal issues. It is recommended that readers seek updated information and advice from professional tax consultants.

VAT in Turkey 2024

Turkey, located at the junction of Europe and Asia, boasts a well-developed tax system, including VAT at varying rates, as follows:

1. Standard VAT Rate: In Turkey, the standard VAT rate applied is 18%. It is charged on almost all types of products and services.
2. Reduced VAT rates:

1. • The 8% rate concerns some foods, books, educational services, and medical devices.
   • The 1% rate is relevant for some foodstuffs, like some agricultural products and magazines.

Minimum Threshold for Registration as a VAT Payer
In Turkey, the threshold for being registered as a VAT payer differs, considering the type of activity and the place where it will be performed:

• The threshold amounts to 150,000 Turkish liras, that is, about 17,500 euros, for merchants and manufacturers.
• The threshold for providing services is 70,000 Turkish liras (approximately 8,200 euros).

Regulation and Control Over The Payment of Taxes
The main state body responsible for tax regulation and VAT collection in Turkey is the Turkish Tax Administration (Gelir İdaresi Başkanlığı). This body is charged with the monitoring of observance of tax legislation, processing of tax returns, and collection of taxes. It also provides information and support to taxpayers.

Knowledge of the applicable rates and the compulsory VAT registration is important in initiating business in Turkey. This is helpful for the businessperson to observe the national laws concerning taxation and avoid going to courts of law due to negligence. We advise that you consult professional tax consultants for more updated information and advice.

VAT in Italy 2024

Italy, since it’s a member of the European Union, has several rates applied in its multi-level VAT system, such as:

1. Standard VAT rate: The standard VAT rate in Italy is 22%. The standard VAT rate is applicable to nearly all kinds of products and services.
2. Reduced VAT rates:

1. • The 10% rate applies to some foodstuffs, pharmaceutical products, passenger transport, and housing.
   • The 5% rate applies to some types of agricultural goods and services.
   • The rate is 4% for basic necessities, including some food and medical devices.

Minimum Threshold for Registration as a VAT Payer
Italy also has a threshold for compulsory registration as a VAT payer:

• The threshold is 65,000 euros for most activities. This means in the case of annual turnover exceeding the sum pointed above, the company has the obligation to register as a VAT payer.

Regulation and Control Over The Payment of Taxes
The competent Italian authority for tax compliance and issuance of VAT is the Italian Tax Administration – Agenzia delle Entrate. This agency provides enforcement of tax laws, processing of tax returns, and collection of taxes. The Agency also provides information and assistance to taxpayers.

Not being aware of the VAT rates and the criteria for VAT payers’ registration in Italy may be crucial for business activities in the country. It supports businesses in their work to respond properly to the national tax legislation and avoid legal problems. We recommend contacting professional tax consultants for more detailed information and advice.

VAT in the UK 2024

Although the UK is no longer a member of the European Union, it still applies a system with different VAT rates:

1. Standard VAT Rate: The standard VAT rate in the UK amounts to 20%. This applies for the most part to all products and services.
2. Reduced VAT rates:

1. • The 5% rate applies to, amongst others, baby car seats, energy-saving products, women’s sanitary products, and home care services.
   • The zero VAT rate applies to children’s clothes, books, newspapers, and most food products.

Minimum Threshold for Registering as a VAT Payer

The UK likewise has a threshold for registering as a VAT payer, whereby:

• The threshold is £85,000. Consequently, in case the annual turnover made by the company exceeds the sum mentioned above, then such a company needs to register as a payer of value-added tax.

The government body that is supposed to regulate and collect the taxes with regard to VAT in the United Kingdom is known as Her Majesty HM’s Revenue and Customs (HMRC). It observes the compliances with tax laws, undertakes processing of returns, and collects taxes. HMRC gives information and support to taxpayers.

Understanding the rates of VAT and conditions for registration as a VAT payer is essential to run a business in the UK, so that companies would be able to follow the tax law without any legal consequences. We would advise periodic contact with qualified tax consultants for the latest information and advice.