More than 170 countries worldwide—including all European countries—levy a Value-Added Tax (VAT) on goods and services.
- Highest: The EU countries with the highest standard VAT rates are Hungary (27 percent), and Croatia, Denmark, and Sweden (all at 25 percent).
- Lowest: Luxembourg levies the lowest standard VAT rate at 17 percent, followed by Malta (18 percent), and Cyprus, Germany, and Romania (all at 19 percent).
- Average: The EU’s average standard VAT rate is 21 percent, six percentage-points higher than the minimum standard VAT rate required by EU regulation.
Source Tax Foundation
