If you sell to customers in Europe, as a freelancer, SaaS founder, or online shop, you'll need VAT rates constantly. Here are the standard rates, the maths, and the rules that trip people up.
Standard VAT rates
| Country | Standard rate |
|---|---|
| Austria | 20% |
| Belgium | 21% |
| Bulgaria | 20% |
| Croatia | 25% |
| Cyprus | 19% |
| Czechia | 21% |
| Denmark | 25% |
| Estonia | 24% |
| Finland | 25.5% |
| France | 20% |
| Germany | 19% |
| Greece | 24% |
| Hungary | 27% |
| Ireland | 23% |
| Italy | 22% |
| Latvia | 21% |
| Lithuania | 21% |
| Luxembourg | 17% |
| Malta | 18% |
| Netherlands | 21% |
| Poland | 23% |
| Portugal | 23% |
| Romania | 21% |
| Slovakia | 23% |
| Slovenia | 22% |
| Spain | 21% |
| Sweden | 25% |
Most countries also have reduced rates for things like food, books, and public transport. Those vary a lot, so look them up per product.
The maths
Add VAT to a net price:
gross = net × (1 + rate) €100 × 1.21 = €121
Remove VAT from a gross price:
net = gross ÷ (1 + rate) €121 ÷ 1.21 = €100 VAT = €21
The classic mistake is subtracting the rate from the gross price: €121 × 0.79 = €95.59, which is wrong. My Percentage Calculator helps with quick checks, and a dedicated EU VAT calculator is on my list of tools to build.
B2B vs B2C
Selling services to EU businesses (B2B)
Usually the reverse charge applies: you invoice without VAT, include the customer's VAT number and a reverse-charge note, and the customer accounts for VAT. Details in Reverse Charge VAT for Freelancers.
Selling digital services to EU consumers (B2C)
VAT is generally due at the customer's country rate. The One-Stop Shop (OSS) scheme lets EU-registered sellers report it in one return. Non-EU sellers can use the non-Union OSS scheme.
This is one reason many SaaS founders use a merchant of record (a platform that sells on your behalf and handles VAT).