EU VAT Rates 2026 by Country: A Guide for Online Sellers
VATAi TeamEU VAT Rates 2026 by Country: A Guide for Online Sellers
Germany's standard VAT rate is 19%. France's is 20%. For online sellers, knowing which rate applies to each order affects both the customer's checkout price and the revenue left after VAT.
This guide helps you answer three questions: which country's rate should you charge, does your product qualify for a lower rate, and does Amazon collect VAT for you? Find the 2026 EU rates below, followed by practical examples for marketplace and online-store sellers. The UK and other non-EU markets are listed separately.
EU VAT rates by country in 2026
EU standard VAT rates range from 17% in Luxembourg to 27% in Hungary. Most ordinary consumer products use the standard rate. Lower rates apply only to categories defined by each country.
Sources: Your Europe VAT table, European Commission VAT guidance and national tax authorities linked below.
The lower-rate column combines reduced and selected special rates for quick reference. It excludes zero rates, exemptions and some narrowly defined categories. A listed rate does not mean your product qualifies.
Regional exceptions matter. Mainland rates do not cover every territory. Portugal's Azores and Madeira have different rates; qualifying Greek island transactions use 17%, 9% or 4%; Spain's Canary Islands are outside the EU VAT territory. Check the delivery location before applying a national rate.
Recent changes to check in your settings
- Estonia: the standard rate increased to 24% on 1 July 2025.
- Romania: the standard rate became 21% on 1 August 2025, with an 11% reduced rate for qualifying supplies.
- Finland: the main reduced rate fell from 14% to 13.5% on 1 January 2026. The standard rate remains 25.5%.
- Lithuania: the current main reduced rates are 5% and 12%; do not carry forward an old 9% setting without checking the category.
Sources: Estonia, Romania, Finland, Lithuania and Greece.
Update the rate from its effective date and test checkout, invoices and refunds. Keep the original tax treatment for earlier orders rather than overwriting historical records.
VAT rates outside the EU: UK and other European markets
These markets have separate VAT systems. EU OSS and IOSS do not replace their local requirements.
Sources: HMRC, Norwegian Tax Administration, Swiss Federal Tax Administration, Liechtenstein Fiscal Authority, Iceland Revenue and Customs and Türkiye Revenue Administration.
For goods sent to Great Britain from abroad, the £135 consignment threshold helps determine whether VAT is collected at sale or handled at import. Marketplace involvement also affects responsibility. Northern Ireland has special EU-linked rules for goods, so check it separately.
Norway uses VOEC, a local scheme for eligible online sales, including qualifying consumer goods below NOK 3,000 per item. It is separate from EU IOSS. Switzerland and Liechtenstein share a VAT territory, with their own mail-order and platform rules.
Which VAT rate should you charge an EU customer?
Start with where the goods are shipped from and delivered, then check the customer and product. The country where your company is registered does not automatically determine the rate.
For most cross-border consumer goods sales within the EU, use the rate where the goods are delivered. This is called destination taxation.
Selling to consumers: three common examples
Assume you sell an ordinary product subject to the standard rate and are responsible for collecting VAT.
The second example is common for Amazon FBA and online-store sellers using EU warehouses. Selling through a German website or holding a German VAT number does not make every order subject to German VAT.
Does the €10,000 threshold apply?
The €10,000 threshold lets certain small EU businesses charge their home-country VAT on covered cross-border consumer sales. For goods, the seller must be established in only one EU country and ship from that country.
Eligible cross-border goods sales and specified digital services must total no more than €10,000 excluding VAT in each of the current and previous calendar years.
Non-EU-established sellers cannot use this threshold simply because they have an EU VAT number. Qualifying EU sellers can also choose destination taxation before reaching it.
Source: European Commission OSS and threshold guidance.
Selling to businesses
For qualifying goods shipped between EU countries to a VAT-registered business, the seller can invoice without charging VAT when the exemption conditions are met. A valid VAT number alone is insufficient: transport evidence and other requirements also matter. Domestic B2B sales do not automatically qualify for the same treatment.
Confirm the buyer's status before treating an Amazon Business or wholesale order as VAT-free. The platform's business-customer label is not a substitute for checking the transaction.
Does your product qualify for a reduced rate?
Food, books, medicines and some other categories qualify for lower rates in certain countries. The exact product definition matters: a supplement is not automatically treated like ordinary food, and a cosmetic is not automatically a medical product.
A reduced rate in Germany does not prove the same product qualifies in France or Spain. Check each destination country's rules and keep the product description, relevant specifications and source supporting the rate.
For a practical product list, record four items: SKU, country, confirmed rate and effective date. Add a link to the national guidance. This gives your team a clear basis for updating Amazon product tax codes and online-store settings.
Zero-rated and exempt sales also differ. Zero-rated sales normally preserve recovery of related purchase VAT; exempt sales can restrict it. Do not select a 0% tax code simply because an order should have no VAT charged.
How OSS, IOSS and Marketplace affect VAT
OSS and IOSS simplify reporting
The One Stop Shop (OSS) does not create one EU VAT rate. Union OSS lets sellers report eligible cross-border EU consumer sales through one quarterly return, using the relevant destination-country rates.
The Import One Stop Shop (IOSS) covers eligible consumer goods imported in consignments with an intrinsic value of €150 or less. The destination rate is collected at checkout and reported monthly. Excise goods are excluded. The €150 limit is an eligibility ceiling, not a VAT exemption.
Ordinary domestic sales from your own local stock are generally reported in domestic VAT returns. OSS also does not replace the reporting of your own inventory transfers or the recovery of purchase VAT. See VATAi's OSS guide for the full comparison.
When Amazon collects VAT
EU rules make a marketplace responsible for customer-facing VAT on specified sales, including eligible imported consignments up to €150 and certain sales of EU-held goods by non-EU-established sellers.
For these covered orders, the marketplace accounts for VAT on the sale to the customer. Your business still needs to assess obligations relating to imports, stock transfers, purchases and sales outside those rules.
For Amazon Pan-EU sellers, check where stock is held and moved. Marketplace VAT collection does not automatically remove local registration and filing obligations. VATAi's VAT registration guide explains the main triggers.
When reconciling sales, separate marketplace-collected VAT from seller-collected VAT. Do not add the marketplace's customer VAT again as your own output VAT; retain any seller reporting required for the underlying transaction.
Source: European Commission e-commerce VAT explanatory notes.
How VAT affects your selling price
A fixed VAT-inclusive price leaves different amounts of revenue in different countries. To compare margins, remove VAT before subtracting product costs, fees and fulfilment expenses.
Net selling price = VAT-inclusive price ÷ (1 + VAT rate)
For a standard-rated product sold for €120 including VAT:
These figures exclude all other costs. The example shows why the same advertised price produces different margins across markets.
If you want €100 of revenue before costs, a 20% VAT rate requires a €120 consumer price; 27% requires €127. Use this calculation when comparing country-level prices and promotions.
Also check shipping and refunds. Seller-charged delivery costs generally form part of the taxable amount, while mixed-rate baskets need appropriate allocation. Refunds should reference the original order and tax treatment, especially after a rate change.
Four checks before changing your VAT settings
- Confirm the country. Check dispatch and delivery locations, including special territories.
- Confirm the product rate. Use the country's product rules and the rate effective on the transaction date.
- Confirm who collects VAT. Separate your direct sales from marketplace orders covered by platform collection.
- Test a sale and refund. Check that checkout, invoice and reporting figures agree before applying changes across the catalogue.
Keep the evidence behind each rate with your product records. Review settings when you enter a new market, add a product category, change fulfilment locations or an official rate changes.
Frequently Asked Questions
What is the EU VAT rate?
There is no single EU VAT rate. In 2026, standard rates range from 17% in Luxembourg to 27% in Hungary. The country where the sale is taxed and its product-classification rules determine the rate you charge.
When do I need to register for EU VAT?
Register where your activities require a local VAT number. Holding and selling stock in an EU country usually creates local obligations. OSS can cover qualifying cross-border consumer sales instead of separate destination-country registrations. Non-EU sellers cannot use the €10,000 threshold. See the EU registration guidance.
What's the difference between OSS and IOSS, and which one should I use?
For goods sellers, Union OSS covers eligible consumer sales shipped between EU countries. IOSS covers eligible goods shipped from outside the EU in consignments with an intrinsic value up to €150, excluding excise goods. Choose according to your fulfilment route; sellers using both routes can use both schemes.
Has the €150 duty exemption been removed? What changed in 2026?
Yes. The €150 customs-duty exemption ended on 1 July 2026. Covered low-value distance sales now face a temporary €3 duty per tariff item in the consignment, separate from VAT. IOSS still has its €150 eligibility limit. See the Commission's 2026 customs guidance.
What happens if I don't register for VAT?
If registration was required, you still owe VAT on taxable sales for which you were responsible, even if you did not collect it. Late registration can also lead to interest and penalties under national rules. Correct missing registrations, returns and payments promptly. See the EU VAT liability rules.
Will marketplaces like Amazon or eBay collect and remit VAT for me?
Yes, for sales covered by the marketplace rules. These include qualifying imported consignments up to €150 and certain EU-stock consumer sales by non-EU-established sellers. Platforms do not take over all your obligations: imports, stock transfers and non-covered sales can still require your own registrations and returns.
How often do I need to file EU VAT returns, and what does compliance cost?
Union OSS returns are quarterly; IOSS returns are monthly. Domestic schedules vary, commonly monthly or quarterly. Costs depend on countries, filing volume and support required. Request a quote separating registration, recurring filings and representation fees. VAT payable is separate from service fees. See the EU filing guidance.
How do I avoid VAT being charged at checkout and again at customs?
For eligible IOSS orders, securely send the valid IOSS number to the carrier for the customs declaration, with accurate shipment values. If VAT is charged twice, obtain the import receipt and contact the seller or marketplace to arrange the appropriate correction or refund. Customs duty is a separate charge. See the Commission's IOSS guidance.
Are UK VAT and EU VAT the same, or do I need to register separately?
They are separate systems. An EU VAT or OSS registration does not replace a required UK VAT registration. Assess your UK sales and stock separately. Northern Ireland has special rules for goods, including OSS access in eligible cases. See HMRC's Northern Ireland guidance.
How do I know if I need OSS or multiple country VAT registrations?
Check where you hold stock and which sales you make. OSS can cover eligible cross-border consumer sales, while local stock and domestic activities usually need national registrations. Amazon Pan-EU sellers can therefore need both. For example, German and French inventory can require both local registrations alongside OSS for eligible cross-border sales.
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