VAT in Europe 2024

VAT in Europe 2024 

In 2024, value-added tax (VAT) rates in European countries continue to play a key role in tax systems, having a significant impact on the continent’s economic environment. VAT, as an indirect consumption tax, remains one of the main sources of government revenue in European countries, as well as an important factor in the pricing of goods and services.

General trends

In recent years, there has been a tendency to stabilize VAT rates in most European countries after a series of increases caused by the economic crises of previous years. Nevertheless, individual countries continue to adjust their tax rates in an effort to boost economic growth, increase consumption, or solve government budget problems.

VAT rates by country

Standard VAT rates in European countries in 2024 range from 17% in Luxembourg to 27% in Hungary, reflecting a significant variety of tax approaches within Europe. Other countries, such as the UK, Germany, France and Italy, keep their rates in the range of 20% to 22%.

Reduced VAT rates applied to certain goods and services, such as books, medicines, and food, are also widely used to provide social support to the population and stimulate economic sectors. These rates may be significantly lower than the standard rates and vary from country to country.

Features of VAT in different countries

  • Germany keeps its standard VAT rate at 19%, making it one of the lowest among major EU economies.
  • Hungary has the highest standard VAT rate in Europe – 27%.
  • Norway, which is not a member of the EU, applies a standard VAT rate of 25%, with reduced rates for certain goods and services.
  • Ireland offers one of the lowest VAT rates on books and children’s educational materials, underscoring the country’s commitment to supporting education and culture.

Impact of VAT on businesses and consumers

VAT rates have a direct impact on the business environment and consumer demand. It is important for companies to understand the structure of VAT in their countries of operation in order to optimize pricing and tax planning. Consumers, in turn, face the impact of VAT on the final prices of goods and services. VAT rates in Europe in 2024 continue to reflect the diversity of economic strategies and social policies of European countries. Understanding these rates is an important aspect for running a successful business and managing your personal finances effectively in the European economy. Below, lawyers and tax consultants from Regulated United Europe have reviewed VAT rates in Europe.

VAT in Europe 2024

VAT in Albania 2024

VAT in Albania In Albania, the value added tax (VAT) rate in 2023 was 20%. This rate has remained unchanged for the past few years, starting in 2019.

In Albania, the threshold for registering as a VAT payer was increased from 2 million lek to 10 million lek per year. This change came into effect on January 1, 2021. It is also worth noting that voluntary VAT registration is allowed for taxpayers with an annual turnover of at least 5 million lek. These amendments apply to all taxpayers, including those who are required to register for VAT regardless of the annual turnover amount, such as lawyers, accountants, engineers, architects and others, as well as to taxpayers engaged in agricultural production, provided that the annual turnover threshold of 5 million lek is met.

It is also worth mentioning that enterprises in Albania with a turnover of less than 8 million lek are exempt from income tax.

In Albania, the Albanian Taxation Office is responsible for collecting and managing taxes, including timely payment of taxes Albanian Taxation Office. This body manages the main sources of government revenue, such as income tax, social security, corporate tax and value-added tax, which are applied at the national level.

The tax system in Albania is based on self-assessment, which is subject to constant monitoring by the tax authorities. These checks include all types of taxes that are levied on the business. If discrepancies are identified as a result of a tax audit, the tax authorities issue a notice of tax assessment, which the taxpayer can appeal within 30 calendar days.

Taxpayers can submit a revised return within 36 months of the original declaration being submitted, provided that this declaration has not previously been verified by the tax authorities. The limitation period for a tax audit in Albania is five years, but it can be extended by 30 calendar days in certain cases, for example, in the case of a new assessment as a result of an appeal against a previous tax assessment.

The main focus of the tax audit is on areas such as transfer pricing, withholding tax, and aspects that affect corporate tax, such as deduction of expenses

VAT in Latvia 2024

VAT in Latvia In Latvia, value added tax (VAT) has several rates. The standard rate is 21% and applies to all products and services that do not fall under the reduced rates. There are also reduced VAT rates of 12% and 5%, as well as a zero rate. The 12% rate applies to goods and services such as pharmaceutical products, medical devices for the disabled, newspapers, magazines and books (excluding e-books), baby food, hotel services and urban heating services. The second reduced VAT rate, set at 5%, applies to local food products, in particular fruits and vegetables. The zero VAT rate applies to intra-community and international transport services.

As for registration as a VAT payer in Latvia, foreign enterprises must register for VAT payment in such situations as import and export of goods from and to Latvia, purchase and sale of goods within the country, sale of goods and services from Latvia to private customers in other EU countries, and storage of goods in Latvia. However, if an entrepreneur selling goods to consumers in other EU countries exceeds the limit of €10,000 for cross-border sales of goods at a distance, they must register and pay VAT in the buyer’s country, or they can choose a special VAT OSS procedure. It is important to note that entrepreneurs from non-EU countries will have to use the services of a tax representative to register VAT in Latvia.

The State Tax Service (SRS) is responsible for regulating the timely payment of taxes, including VAT, in Latvia SRS. To register as a VAT payer in Latvia, you must submit the relevant documents to the State Tax Service. Registration can be done online, by email, in person at the SRS Customer Center or at any regional business registration office. After successful registration, the VAT payer is assigned a local VAT number consisting of the prefix “LV” and 11 digits.

VAT in Andorra 2024

VAT in Andorra In Andorra, the rates of value-added Tax (VAT), known as General Indirect Tax (IGI), vary depending on the category of goods and services. The standard VAT rate is 4.5%, which is one of the lowest in Europe. In addition, Andorra applies reduced and increased VAT rates:

  • The 0% rate applies to certain medical and educational services, housing rentals, stamps, and investment gold.
  • The 1% rate applies to food and beverages (excluding alcohol), as well as books, magazines, and newspapers.
  • The 2.5% rate applies to transportation services (excluding cable cars), certain private educational, cultural and medical services, as well as works of art, collectibles and antiques.
  • The increased rate of 9.5% applies only to banking and financial services.

The minimum threshold for registering as a VAT payer in Andorra depends on the type of activity. For entrepreneurs or professionals, this threshold is €40,000 in annual sales of goods and services. For agricultural activities, the threshold is €150,000 per year.

The responsible authority for regulating the timely payment of taxes in Andorra, including VAT, is the State Tax Service of the country. It manages the registration process for VAT payers and ensures compliance with tax obligations.

VAT in Liechtenstein 2024

VAT in Liechtenstein In Liechtenstein, VAT (known as general indirect tax) is regulated by the laws of Switzerland, with which Liechtenstein has close economic ties. Starting from January 1, 2024, the total VAT rate is 8.1% (previously 7.7%). There is a reduced VAT rate of 2.6% (previously 2.5%) for food, medicines, newspapers, magazines and books. In addition, the rate of 3.7% applies for accommodation services. Some services are exempt from VAT, such as healthcare, social security, education, banking and insurance services.

Persons engaged in business activities with a turnover of less than 100,000 Swiss francs in a financial year may be exempt from VAT. This rule applies regardless of the legal form of activity.

The responsible authority for regulating the timely payment of taxes, including VAT, in Liechtenstein is the country’s tax administration, which follows Swiss tax legislation

VAT in Lithuania 2024

VAT in Lithuania The following value-added tax (VAT) rates will apply in Lithuania in 2024:

  1. The basic VAT rate is 21%.
  2. Reduced VAT rates:
    • 9% for residential energy, books and e-books, domestic passenger transportation, hotel services and accommodation.
    • 5% for medical products, pharmaceuticals, newspapers and magazines (including digital ones), as well as for fruits, berries and vegetables.
  1. The zero rate applies to certain types of goods and services, including exports and intra-community shipments of goods.

The minimum threshold for registering as a VAT payer in Lithuania is €55,000. There is no minimum registration threshold for foreign entrepreneurs if they carry out taxable activities.

The State Tax Inspectorate, which is part of the Ministry of Finance, is responsible for regulating and monitoring the timely payment of taxes, including VAT, in Lithuania

VAT in Austria 2024

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

  • Basic VAT rate: 20%.
  • Reduced VAT rates: 10% and 13%.

The 10% rate applies, for example, to residential housing rentals, furnished rooms and bedrooms, and passenger transportation (with the exception of domestic air transportation, for which the rate is 13%). The 13% rate applies, for example, to the supply of animals, plants, firewood, etc., as well as to income from the activities of artists and sports events.

The minimum threshold for registering as a VAT payer in Austria is not specified, but the pan-European standard usually applies.

The body that regulates the payment of taxes, including VAT, in Austria is the Federal Ministry of Finance.

VAT in Luxembourg  2024

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

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

The minimum threshold for registering as a VAT payer is €35,000. There is no registration threshold for non-residents.

The State body that regulates the payment of taxes in Luxembourg, including VAT – is the Administration for Registration, Domains and VAT (Administration de l’’enregistrement, des Domaines et de la TVA), which is part of the Ministry of Finance.

VAT in Malta 2024

VAT in Malta The following value-added tax (VAT) rates apply in Malta from 1 January 2024:

  • The basic VAT rate is 18%.
  • A new reduced rate of 12% has been introduced for certain services, including pleasure yacht rentals, certain medical services, securities custody services, and certain loan management and loan guarantee services.
  • There are other reduced VAT rates of 7% and 5%, as well as some deliveries that are taxed at zero.

The minimum threshold for registering as a VAT payer in Malta is not specified.

The public authority responsible for regulating taxes, including VAT, in Malta is the Tax Authorities)

VAT in Belgium 2024

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

Basic VAT rate: 21%.

Reduced VAT rates: 12%, 6% , and 0%.

The minimum threshold for registering as a VAT payer in Belgium is €25,000 for domestic transactions. Non-residents must register immediately, without having a minimum threshold.

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

VAT in Bosnia and Herzegovina 2024

VAT in Bosnia and HerzegovinaIn Bosnia and Herzegovina, the standard VAT rate is 17%. The country does not apply reduced VAT rates. Any person making taxable deliveries of goods and services that exceed or are likely to exceed the 50,000 convertible mark (BAM) threshold is required to register as a VAT payer. Exports of goods are taxed at a zero rate. The State body that regulates the payment of taxes, including VAT, in Bosnia and Herzegovina is the country’s tax administration.

VAT in Montenegro 2024

VAT in Montenegro Montenegro’s current VAT rates in 2024 are as follows:

  • The basic VAT rate is 21%.
  • The reduced VAT rate – 7%, applies to goods such as bread, milk, books, medicines, computers.
  • The zero VAT rate applies to the export of goods and the supply of gasoline for ships in international traffic.

Registration as a VAT payer in Montenegro is mandatory for entities that sell a turnover of more than 30,000 euros in a 12-month period. Voluntary registration is also possible for those who have not reached this threshold. After registration, the company cannot cancel registration for three years.

The Tax Administration of Montenegro is responsible for regulating and controlling taxes, including VAT.

VAT in Bulgaria 2024

VAT in Bulgaria The VAT rates in Bulgaria in 2024 are as follows:

  1. Basic VAT rate: 20%, applies to most goods and services.
  2. Reduced rate: 9%, used for services in the hotel business and rental of real estate.
  3. 0% rate: Applies to international transport services and certain other transactions, especially in the case of export of goods.

The threshold for registering as a VAT payer in Bulgaria is set at 50,000 BGN (about 25,000 euros). If the company’s annual turnover exceeds this amount, it must register as a VAT payer.

Taxes in Bulgaria are regulated by various laws, including the Law on Value Added Tax, and are also controlled by the relevant tax authorities. The tax policy in the country is aimed at both residents and non-residents, legal entities and individuals, as well as individual entrepreneurs.

In addition, there are other types of taxes in Bulgaria, such as corporate income tax (10%), personal income tax (also 10%), as well as various types of social contributions and property taxes. All this together creates a fairly diverse and multi-level tax system.

VAT in the Netherlands 2024

VAT in Netherlands In the Netherlands, the following value-added tax (VAT) rates are set for 2024:

  1. Basic VAT rate: 21%. This rate applies to most goods and services sold in the country.
  2. Reduced VAT rate: 9%. This rate is used for certain categories of goods and services, for example, in some cases it may apply to hotel services and food products.
  3. 0% VAT rate: Applies in special cases, for example, when goods are exported outside the country.

Companies in the Netherlands are required to register as VAT payers if their annual turnover exceeds a certain threshold. However, this source does not specify specific information about the minimum threshold for registering as a VAT payer for 2024.

The Dutch Tax service is responsible for monitoring and regulating the timely payment of taxes, including VAT. VAT reports are submitted regularly (usually every month or quarter), and fines may be imposed for non-compliance with the deadline for submitting reports or paying tax.

VAT in Croatia 2024

VAT in Croatia Croatia has several VAT rates, which is in line with general practice in European Union countries. At the time of my last update, the main bids are as follows:

  1. Standard VAT Rate: The standard VAT rate in Croatia is 25%. This is the total bid for most products and services.
  2. Reduced rates: Croatia also offers reduced VAT rates:
    • The 13% rate applies to certain products and services, including 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 Registering as a VAT Payer

For small businesses and individual entrepreneurs, the threshold for registering as VAT payers is important. In Croatia , this threshold is:

  • 300,000 Croatian kuna (about 40,000 euros). If the company’s turnover in the last 12 months exceeds this amount, the company is required to register as a VAT payer.

Regulation and Control Over The Payment of Taxes

The State body responsible for regulating and monitoring the timely payment of taxes, including VAT, in Croatia is the Ministry of Finance and its division, the Tax Administration (Porezna Uprava). These bodies not only monitor compliance with tax laws, but also provide information and support to taxpayers.

Conclusion

Value added tax is an important part of the Croatian tax system. Understanding current VAT rates and registration requirements helps entrepreneurs and businesses run their businesses in accordance with local laws. It is always recommended that you consult a professional tax consultant or lawyer to obtain up-to-date and accurate information, as well as to manage your tax obligations.

VAT in Norway 2024

VAT in Norway Value added tax (VAT) is a key element of the Norwegian tax system. Norway has various VAT rates that have been set to meet a variety of economic needs:

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

Minimum Threshold for Registering as a VAT Payer

Norway also has a threshold for mandatory registration as a VAT payer. This threshold is defined as follows:

  • 50,000 Norwegian kroner (about 5,000 euros). Companies whose annual turnover exceeds this amount are required to register as VAT payers.

Regulation and Control Over The Payment of Taxes

The state body responsible for regulating taxes and collecting VAT in Norway is the Tax Office (Skatteetaten). This body not only monitors compliance with tax legislation and tax collection, but also provides information support to taxpayers. The Tax Office is also responsible for registering companies as VAT payers.

Conclusion

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

VAT in Cyprus In Cyprus, as in most European Union countries, there are several VAT rates that reflect different categories of goods and services:

  1. Standard VAT rate: According to the latest data, the standard VAT rate in Cyprus is 19%. This rate applies to most products and services.
  2. Reduced VAT rates:
    • 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.
  1. 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. This means that if the company’s annual turnover exceeds this amount, it must register as a VAT payer.

Regulation and Control Over The Payment of Taxes

The main body responsible for regulating taxes and collecting VAT in Cyprus is the Department of Taxation and Customs. This department not only monitors compliance with tax laws and tax collection, but also provides information support to taxpayers and monitors the process of registering as VAT payers.

Conclusion

Understanding VAT rates and the process of registering as a value-added tax-payer is a key aspect for running a successful business in Cyprus. Proper accounting of these rates and compliance with tax requirements helps to avoid legal and financial problems. For up-to-date and detailed information, we recommend contacting qualified tax consultants.

VAT in Poland 2024

VAT in Poland Poland, as a member of the European Union, applies a VAT system that includes different rates for different categories of goods and services:

  1. Standard VAT rate: According to the latest data, the standard VAT rate in Poland is 23%. This is the basic rate, applied to most goods and services.
  2. Reduced VAT rates:
    • The 8% rate applies to some food products, magazines, and some medical products and services.
    • The 5% rate is used for some food products, books (including electronic ones), and periodicals.
  1. Super-reduced VAT rate: For some types of goods, such as bread and dairy products, a super-reduced rate of 0% may apply.

Minimum Threshold for Registering as a VAT Payer

For entrepreneurs and companies in Poland, there is a certain turnover threshold for mandatory registration as a VAT payer:

  • The threshold is 200,000 zlotys (approximately 50,000 euros). If the company’s annual turnover exceeds this amount, it must 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 Poland is the Ministry of Finance and its division, 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.

Conclusion

Understanding VAT rates and the procedure for registering as a VAT payer is crucial for successful business operations in Poland. This allows companies and entrepreneurs to comply with local tax laws and avoid legal problems. For up-to-date and accurate information, it is always recommended to contact professional tax consultants.

VAT in Czech Republic 2024

VAT in Czech Republic VAT is an important part of the Czech tax system. The country has several different VAT rates, which allows you to adapt taxation to different types of goods and services:

  1. Standard VAT rate: In the Czech Republic, the standard VAT rate is 21%. This rate applies to most products and services.
  2. Reduced VAT rates:
    • The 15% rate is usually applied to some food products, books, magazines, and some health services.
    • The 10% rate applies, for example, to medicines, baby food, and books.

Minimum Threshold for Registering as a VAT Payer

The Czech Republic sets a threshold for mandatory registration as a VAT payer:

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

Regulation and Control Over The Payment of Taxes

The Financial Authority of the Czech Republic (Finančnn i sprá va Č esk é republiky) is responsible for regulating taxes and collecting VAT in the Czech Republic. This body monitors compliance with tax laws, processes tax returns, and ensures that taxes are collected. The Financial Department also provides information and support to taxpayers.

Conclusion

For businesses in the Czech Republic, understanding VAT rates and requirements for registering as a VAT payer is critical. This helps companies avoid legal problems and ensure compliance with local tax laws. It is recommended that you regularly consult with professional tax consultants for up-to-date information and advice.

VAT in Portugal 2024

VAT in Portugal VAT is an important part of the Portuguese tax system. The country has different VAT rates that are suitable for a variety of categories of goods and services:

  1. Standard VAT rate: In Portugal, the standard VAT rate is 23%. This rate applies to most products and services.
  2. Reduced VAT rates:
    • The 13% rate is used for some food products, hotel services, and restaurants.
    • The 6% rate applies mainly to medical products and services, books, and some food products.

Minimum Threshold for Registering as a VAT Payer

Portugal sets a certain threshold for mandatory registration as a VAT payer:

  • The threshold is 10,000 euros. This means that if the company’s annual turnover exceeds this amount, it must register as a VAT payer.

Regulation and Control Over The Payment of Taxes

The Tax and Customs Authority of Portugal (Autoridade Autoridade Tributà ria e Aduaneira) is responsible for regulating taxes and collecting VAT in Portugal. This body monitors compliance with tax laws, processes tax returns, and ensures that taxes are collected. It also provides information support to taxpayers.

Conclusion

Understanding VAT rates and the procedure for registering as a VAT payer in Portugal is key to doing business. This helps companies comply with local tax laws and avoid legal problems. For up-to-date information and advice, we recommend contacting professional tax consultants.

VAT in Denmark 2024

VAT in Denmark Denmark, as a country of the European Union, has implemented the VAT system, which is a key element of its tax structure. В Denmark has 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.

Denmark does not have reduced or zero VAT rates that apply to certain goods or services, which is a distinctive feature compared to other EU countries.

Minimum Threshold for Registering as a VAT Payer

For entrepreneurs and companies in Denmark, there is the following threshold for mandatory registration as a VAT payer:

  • The threshold is 50,000 DKK (about 6,700 euros). If the company’s annual turnover exceeds this amount, it must register as a VAT payer.

Regulation and Control Over The Payment of Taxes

The state body responsible for regulating taxes and collecting VAT in Denmark is the Danish Tax Administration (Skattestyrelsen). This body monitors compliance with tax laws, processes tax returns, and ensures that taxes are collected. It also provides information and support to taxpayers, helping them run their businesses in accordance with the country’s tax laws.

Conclusion

Understanding VAT rates and registration requirements as a VAT payer is important for anyone doing business in Denmark. This ensures compliance with local tax laws and avoids legal problems. For up-to-date information and advice, we recommend contacting qualified tax consultants.

VAT in Romania 2024

VAT in Romania Romania, as a member of the European Union, has several different VAT rates that apply to different categories of goods and services:

  1. Standard VAT rate: The basic VAT rate in Romania is 19%. This rate applies to most products and services.
  2. Reduced VAT rates:
    • The 9% rate applies to certain food products, including medical products and services, hotel services, and water supplies.
    • The 5% rate is used for books, newspapers, magazines and access to sports events, as well as for the sale of certain types of real estate.

Minimum Threshold for Registering as a VAT Payer

Romania also has a certain threshold for mandatory registration as a VAT payer:

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

Regulation and Control Over The Payment of Taxes

The state body responsible for regulating taxes and collecting VAT in Romania is the National Agency for Tax Administration (Agenția Națională de Administrare Fiscală – ANAF). This body not only monitors compliance with tax obligations, but also ensures tax collection, as well as provides information support to taxpayers.

Conclusion

Knowledge of VAT rates and rules for registering as a VAT payer is crucial for successful business operations in Romania. This helps businesses comply with local tax laws and avoid legal problems. For up-to-date information and advice, we recommend contacting professional tax consultants.

VAT in Estonia 2024

VAT in Estonia Estonia, as a member of the European Union, has various VAT rates, which are applied depending on the type of goods and services:

  1. Standard VAT rate: In Estonia, the standard VAT rate is 20%. This is the basic rate, applied to most goods and services.
  2. Reduced VAT rates:
    • The 9% rate applies to certain categories of goods and services, including medical supplies, books, and hotel services.
  1. Special VAT rate: There is also a special 0% rate for certain 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. Companies whose annual turnover exceeds this amount must register as VAT payers.

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 monitors compliance with tax legislation and tax collection, but also provides information support to taxpayers.

Conclusion

Understanding the VAT rates and registration procedure in Estonia is crucial for effective business operations and compliance with tax obligations. This helps businesses avoid legal problems and ensure compliance with local tax laws. For up-to-date information, we recommend contacting professional tax consultants.

VAT in Finland 2024

VAT in Finland Finland, as a member of the European Union, has a VAT system that includes different rates for different categories of goods and services:

  1. Standard VAT rate: In Finland, the standard VAT rate is 24%. This is the total rate, applied to most products and services.
  2. Reduced VAT rates:
    • The 14% rate applies to certain food and animal feed products.
    • The 10% rate is used for medical services, books, cultural and sports events, as well as for passenger transport services.

Minimum Threshold for Registering as a VAT Payer

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

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

Regulation and Control Over The Payment of Taxes

The State body responsible for regulating taxes and collecting VAT in Finland is the Finnish Tax Administration (VeroSkatt). This body monitors compliance with tax laws, processes tax returns, and ensures that taxes are collected. It also provides information and support to taxpayers.

Conclusion

Understanding VAT rates and the requirements for registering as a VAT payer is essential for running a successful business in Finland. This helps companies avoid legal problems and ensure compliance with national tax laws. For up-to-date information and advice, we recommend contacting qualified tax consultants.

VAT in Macedonia 2024

VAT in Macedonia The VAT system in North Macedonia includes several rates that reflect different categories of goods and services:

  1. Standard VAT rate: According to the latest data, the standard VAT rate in North Macedonia is 18%. This is the basic rate, applied to most goods and services.
  2. Reduced VAT rate:
    • The 5% rate applies to certain products, including certain food items, books, medical devices, and services.

Minimum Threshold for Registering as a VAT Payer

North Macedonia also has a threshold for mandatory registration as a VAT payer:

  • The threshold is 1,000,000 Macedonian denars (about 16,000 euros). This means that if the company’s annual turnover exceeds this amount, it must 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 North Macedonia is the Revenue and Tax Office (Public Revenue Office – PRO). This body monitors compliance with tax laws, processes tax returns, and ensures that taxes are collected. It also provides information and support to taxpayers.

Conclusion

Understanding the VAT rates and registration requirements in North Macedonia is an important aspect for running a successful business. This helps companies comply with local tax laws and avoid legal problems. For up-to-date information and advice, we recommend contacting professional tax consultants.

VAT in Serbia 2024

VAT in Serbia The VAT system in Serbia includes different rates, which are applied depending on the type of goods and services:

  1. Standard VAT rate: The standard VAT rate in Serbia is 20%. This is the general rate that applies to most products and services.
  2. Reduced VAT rates:
    • The 10% rate applies to certain products and services, including basic foodstuffs, books, medical devices and services, and travel services.

Minimum Threshold for Registering as a VAT Payer

Serbia sets a threshold for mandatory registration as a VAT payer:

  • The threshold is 8 million dinars (approximately 68,000 euros). Companies whose annual turnover exceeds this amount must register as VAT payers.

Regulation and Control Over The Payment of Taxes

The main state body responsible for regulating taxes and collecting VAT in Serbia is the Serbian Tax Authority (Poreska Uprava Srbije). This body not only monitors compliance with tax legislation, but also ensures tax collection, as well as provides information support to taxpayers.

VAT in France 2024

VAT in France France, as one of the founding countries of the European Union, has a multi-level VAT system that includes different rates for different goods and services:

  1. Standard VAT rate: The standard VAT rate in France is 20%. This is the basic rate, applied to most goods and services.
  2. Reduced VAT rates:
    • The 10% rate applies to restaurant services, transportation, renovated residential buildings, and some medical devices.
    • The rate of 5.5% is used for 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 must register as VAT payers.
  • There is no minimum threshold for foreign companies. They must register as VAT payers from the first transaction that is taxable in France.

Regulation and Control Over The Payment of Taxes

The public authority responsible for regulating taxes and collecting VAT in France is General Directorate of Finance (Finances publiques – DGFIP). This body ensures compliance with tax laws, processes tax returns and is responsible for collecting taxes, and provides information support to taxpayers.

Conclusion

Understanding VAT rates and registration requirements as a VAT payer is important for any business operating in France or with French companies. This helps you avoid legal problems and ensure compliance with local tax laws. For up-to-date information and advice, we recommend consulting with professional tax consultants.

VAT in Slovakia 2024

VAT in Slovakia The VAT system in Slovakia complies with pan-European standards and includes 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:
    • The 10% rate applies to certain products, including certain medical products, books, and magazines.

Minimum Threshold for Registering as a VAT Payer

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

  • The threshold is 49,790 euros. If the company’s annual turnover exceeds this amount, it must register as a VAT payer.

Regulation and Control Over The Payment of Taxes

The state body responsible for regulating taxes and collecting VAT in Slovakia is the Financial Administration of the Slovak Republic (Finančnné riaditeľstvo Slovenskej republiky). This body not only monitors compliance with tax laws, but also processes tax returns, ensuring that taxes are collected. It also provides information and support to taxpayers.

Conclusion

Understanding VAT rates and registration requirements as a VAT payer is crucial for doing business in Slovakia. This helps businesses comply with local tax laws and avoid legal problems. For up-to-date information and advice, we recommend contacting professional tax consultants.

VAT in Slovenia 2024

VAT in Slovenia The Slovenian VAT system includes several rates that reflect the diversity of goods and services:

  1. Standard VAT rate: In Slovenia, the standard VAT rate is 22%. This is the basic rate, applied to most goods and services.
  2. Reduced VAT rate:
    • The rate of 9.5% is used for certain products, including 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 defines the threshold for mandatory registration as a VAT payer:

  • The threshold is 50,000 euros. This means that if the company’s annual turnover exceeds this amount, it must 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.

Conclusion

Understanding VAT rates and registration requirements as a VAT payer is important for running a successful business in Slovenia. This helps businesses comply with local tax laws and avoid legal problems. For up-to-date information and advice, we recommend contacting professional tax consultants.

VAT in Germany 2024

VAT in Germany Germany, as one of the leading economies of the European Union, applies a VAT system that includes several rates:

  1. Standard VAT rate: In Germany, the standard VAT rate is 19%. This rate applies to most products and services.
  2. Reduced VAT rate:
    • The 7% rate applies to certain goods and services, including food, books, newspapers and magazines, as well as passenger transportation.

Minimum Threshold for Registering as a VAT Payer

In Germany, there is also a threshold for 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 (Bundeszentralamtfür Steuern — BZSt) together with the local tax offices. These authorities monitor compliance with tax laws, process tax returns, and ensure that taxes are collected. They also provide information support to taxpayers.

Conclusion

Understanding VAT rates and the rules for registering as a VAT payer is critical for doing business in Germany. This helps companies comply with local tax laws and avoid legal problems. We recommend that you regularly contact qualified tax consultants for up-to-date information and advice.

VAT in Spain 2024

VAT in Spain Spain, as a member of the European Union, has a multi-level VAT system that includes various rates:

  1. Standard VAT rate: In Spain, the standard VAT rate is 21%. This is the total rate, applied to most products and services.
  2. Reduced VAT rates:
    • The 10% rate is used for some food products, medical devices, and some types of housing.
    • The super-reduced rate of 4% applies to basic food items, books, newspapers and magazines, as well as medical devices and equipment for people with disabilities.

Minimum Threshold for Registering as a VAT Payer

Spain has a threshold for mandatory registration as a VAT payer:

  • The threshold is 85,000 euros. This means that if the company’s annual turnover exceeds this amount, it must register as a VAT payer.

Regulation and Control Over The Payment of Taxes

The main public authority responsible for tax regulation and VAT collection in Spain is the Spanish Tax Agency (AgenciaTributaria). This body not only monitors compliance with tax laws, but also processes tax returns, as well as ensures tax collection. The Agency also provides information support to taxpayers.

Conclusion

Understanding VAT rates and the rules for registering as a VAT payer is key to running a successful business in Spain. This helps businesses comply with the country’s tax laws and avoid legal problems. For up-to-date information and advice, we recommend contacting professional tax consultants.

VAT in Greece 2024

VAT in Greece Greece, as a member of the European Union, applies a variety of VAT rates corresponding to different categories of goods and services:

  1. Standard VAT Rate: The standard VAT rate in Greece is 24%. This rate applies to most products and services.
  2. Reduced VAT rates:
    • The 13% rate applies to certain food, energy, water, and certain services.
    • The 6% rate is used for medicines, books, and theater tickets.

Minimum Threshold for Registering as a VAT Payer

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

  • The threshold is 10,000 euros. If the company’s annual turnover exceeds this amount, it must be registered as a VAT payer.

Regulation and Control Over The Payment of Taxes

The state body responsible for regulating taxes and collecting VAT in Greece is the Tax Office (αρχήΕσόΔων). This body monitors compliance with tax obligations, processes tax returns, and ensures that taxes are collected. It also provides information and support to taxpayers.

Conclusion

Understanding VAT rates and the requirements for registering as a VAT payer is an important aspect of doing business in Greece. This helps businesses comply with national tax laws and avoid legal problems. For up-to-date information and advice, we recommend consulting with professional tax consultants.

VAT in Sweden 2024

VAT in Sweden Sweden, as a country of the European Union, applies a VAT system that includes different rates for different categories of goods and services:

  1. Standard VAT rate: In Sweden, the standard VAT rate is 25%. This is the total rate, applied to most products and services.
  2. Reduced VAT rates:
    • The 12% rate applies to food and restaurants.
    • The 6% rate is used for books, newspapers, concerts, and passenger transport.

Minimum Threshold for Registering as a VAT Payer

Sweden has a threshold for mandatory registration as a VAT payer:

  • The threshold is SEK 30,000 (about 2,900 euros). This means that if the company’s annual turnover exceeds this amount, it must register as a VAT payer.

Regulation and Control Over The Payment of Taxes

The state body responsible for tax regulation and VAT collection in Sweden is the Swedish Taxation Office (Skatteverket). This body monitors compliance with tax obligations, processes tax returns, and ensures that taxes are collected. It also provides information support to taxpayers.

Conclusion

Understanding VAT rates and registration requirements in Sweden is critical to running a successful business. This helps businesses comply with national tax laws and avoid legal problems. We recommend consulting with professional tax consultants for up-to-date information and advice.

VAT in Hungary 2024

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

  1. Standard VAT rate: The standard VAT rate in Hungary is 27%. This is the basic rate, applied to most goods and services.
  2. Reduced VAT rates:
    • The 18% rate applies to certain food products, as well as to services in the hotel business.
    • The 5% rate is used for medicines, medical devices, and books.

Minimum Threshold for Registering as a VAT Payer

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

  • The threshold is 8 million HUF (approximately 24,000 euros). If the company’s annual turnover exceeds this amount, it is required to register as a VAT payer.

Regulation and Control Over The Payment of Taxes

The state body responsible for regulating taxes and collecting VAT in Hungary is the Hungarian Tax and Customs Administration (NAV-Nemzeti Adó – és Vá mhivatalmhivatal). This body monitors compliance with tax laws, processes tax returns, and ensures that taxes are collected. It also provides information and support to taxpayers.

Conclusion

Knowledge of VAT rates and registration requirements in Hungary is key to running a successful business. This helps companies comply with local tax laws and avoid legal problems. For up-to-date information and advice, we recommend contacting professional tax consultants.

VAT in Iceland 2024

VAT in Iceland Iceland, although not a member of the European Union, has a well-developed VAT system, which includes different rates for different categories of goods and services:

  1. Standard VAT Rate: The standard VAT rate in Iceland is 24%. This rate applies to many products and services.
  2. Reduced VAT rate:
    • The 11% rate is used for certain categories of goods and services, including food, hotels, books and magazines.

Minimum Threshold for Registering as a VAT Payer

Iceland has also set a threshold for mandatory registration as a VAT payer:

  • The threshold is 2 million Icelandic kronor (approximately 15,000 euros). Companies whose annual turnover exceeds this amount are required to register as VAT payers.

Regulation and Control Over The Payment of Taxes

The public authority responsible for managing tax matters in Iceland is the Directorate of Tax Services of Iceland (Rírí kisskattstjóri). This body monitors compliance with tax laws, processes tax returns, and is responsible for collecting taxes. It also provides essential information and support to taxpayers.

Conclusion

Understanding the VAT rates and requirements for registering as a VAT payer in Iceland is critical for doing business in this country. Compliance with these requirements helps companies avoid legal problems and ensure compliance with local tax laws. For up-to-date information and advice, we recommend contacting professional tax consultants.

VAT in Switzerland 2024

VAT in Switzerland Switzerland, although not a member of the European Union, has its own VAT system, which differs from most European VAT systems:

  1. Standard VAT rate: The standard VAT rate in Switzerland is 7.7%. This is one of the lowest standard VAT rates in Europe and applies to most goods and services.
  2. Reduced VAT rate:
    • The rate of 3.7% applies to the hotel service sector.
    • A special 2.5% rate is used for certain products, including food, books, newspapers, and medicines.

Minimum Threshold for Registering as a VAT Payer

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

  • The threshold is 100,000 Swiss francs (about 92,000 euros). Companies whose annual turnover exceeds this amount are required to register as VAT payers.

Regulation and Control Over The Payment of Taxes

The state body responsible for regulating taxes and collecting VAT in Switzerland is the Federal Office of Taxes (Eidgenössische Steuerverwaltung – ESTV). This body not only monitors compliance with tax laws, but also processes tax returns, as well as ensures tax collection. It also provides information and support to taxpayers.

Conclusion

Understanding VAT rates and the procedure for registering as a VAT payer is key to doing business in Switzerland. This helps businesses comply with local tax laws and avoid legal problems. We recommend that you regularly contact qualified tax consultants for up-to-date information and advice.
Lawyers from Regulated United Europe will help you with company formation in Switzerland.

VAT in Ireland 2024

VAT in Ireland Ireland, as a member of the European Union, has a variety of VAT rates that reflect different categories of goods and services:

  1. Standard VAT rate: In Ireland, the standard VAT rate is 23%. This rate applies to most products and services.
  2. Reduced VAT rates:
    • The 13.5% rate is used for certain services and goods, including construction work, repair services, cleaning, and agricultural services.
    • A special rate of 9% applies to electronic newspapers and publications, as well as to the provision of hotel and restaurant services.
    • The 4.8% rate is used for agricultural products.
  1. Zero VAT rate: The zero rate applies to exported goods, books, children’s clothing and footwear, and some food products.

Minimum Threshold for Registering as a VAT Payer

Ireland has set the following thresholds for registering as a VAT payer:

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

Regulation and Control Over The Payment of Taxes

The government body responsible for regulating taxes and collecting VAT in Ireland is the Irish Revenue Commissioners. This body monitors compliance with tax laws, processes tax returns, and ensures that taxes are collected. It also provides information support to taxpayers.

Conclusion

Understanding VAT rates and the procedure for registering as a VAT payer is essential for doing business in Ireland. This helps businesses comply with local tax laws and avoid legal problems. We recommend consulting with professional tax consultants for up-to-date information and advice.

VAT in Turkey 2024

VAT in Turkey Turkey, located at the crossroads of Europe and Asia, has a well-developed tax system, including VAT, with various rates:

  1. Standard VAT Rate: The standard VAT rate in Turkey is 18%. This rate applies to most products and services.
  2. Reduced VAT rates:
    • The 8% rate applies to certain foods, books, educational services, and medical devices.
    • The 1% rate is used for certain food products, including certain agricultural products and magazines.

Minimum Threshold for Registering as a VAT Payer

In Turkey, the threshold for registering as a VAT payer depends on the type of business and its location:

  • The threshold is 150,000 Turkish liras (approximately 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 Idaresi Başkan lkanlığı). This body monitors compliance with tax regulations, processes tax returns, and collects taxes. It also provides information and support to taxpayers.

Conclusion

Understanding VAT rates and registration requirements as a VAT payer is important for doing business in Turkey. This helps businesses comply with national tax laws and avoid legal problems. We recommend consulting with professional tax consultants for up-to-date information and advice.

VAT in Italy 2024

VAT in Italy Italy, as a member of the European Union, has a multi-level VAT system, which includes several rates:

  1. Standard VAT rate: In Italy, the standard VAT rate is 22%. This rate applies to most products and services.
  2. Reduced VAT rates:
    • The 10% rate is used for some food products, pharmaceutical products, passenger transportation, and housing.
    • The 5% rate applies to certain types of agricultural goods and services.
    • The rate is 4% for basic necessities, including certain food and medical devices.

Minimum Threshold for Registering as a VAT Payer

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

  • The threshold is 65,000 euros for most activities. This means that if the company’s annual turnover exceeds this amount, it must register as a VAT payer.

Regulation and Control Over The Payment of Taxes

The main public authority responsible for regulating taxes and collecting VAT in Italy is the Italian Tax Administration (Agenziadelle Entrate). This body monitors compliance with tax regulations, processes tax returns, and is responsible for collecting taxes. The Agency also provides information and support to taxpayers.

Conclusion

Understanding the VAT rates and requirements for registering as a VAT payer in Italy is critical for doing business in the country. This helps businesses comply with national tax laws and avoid legal problems. For up-to-date information and advice, we recommend contacting professional tax consultants.

VAT in the UK 2024

VAT in UK Although the UK has left the European Union, it retains a structured VAT system that includes various rates:

  1. Standard VAT Rate: The standard VAT rate in the UK is 20%. This rate applies to most products and services.
  2. Reduced VAT rates:
    • The 5% rate applies to certain products and services, including baby car seats, energy-saving products, sanitary products for women, and home care services.
    • The zero VAT rate applies to children’s clothing, books, newspapers, and most food products.

Minimum Threshold for Registering as a VAT Payer

The UK also has a threshold for registering as a VAT payer:

  • The threshold is £ 85,000. This means that if the company’s annual turnover exceeds this amount, it must register as a VAT payer.

Regulation and Control Over The Payment of Taxes

The government body responsible for regulating taxes and collecting VAT in the United Kingdom is Her Majesty HM’s Revenue and Customs ( HMRC). This body monitors compliance with tax laws, processes tax returns, and collects taxes. HMRC also provides information and support to taxpayers.

Conclusion

Understanding VAT rates and the requirements for registering as a VAT payer is critical for doing business in the UK. This helps companies comply with national tax laws and avoid legal problems. We recommend that you regularly contact qualified tax consultants for up-to-date information and advice.

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CONTACT US

At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Vilnius, Prague, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.

Company in Lithuania UAB

Registration number: 304377400
Anno: 30.08.2016
Phone: +370 661 75988
Email: [email protected]
Address: Lvovo g. 25 – 702, 7th floor, Vilnius,
09320, Lithuania

Company in Poland Sp. z o.o

Registration number: 38421992700000
Anno: 28.08.2019
Phone: +48 50 633 5087
Email: [email protected]
Address: Twarda 18, 15th floor, Warsaw, 00-824, Poland

Company in Czech Republic s.r.o.

Registration number: 08620563
Anno: 21.10.2019
Phone: +420 775 524 175
Email:  [email protected]
Address: Na Perštýně 342/1, Staré Město, 110 00 Prague

Finwyn Consultancy LTD

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