Every time you buy something, you pay VAT (Value Added Tax). This is a tax that exists in Spain and almost everywhere else in the world (with a few exceptions that confirm the rule). In this article we show you a comparison of VAT in Europe, both in Spain and in other European countries.
VAT is implemented throughout the European Union (EU), but it is true that it is a tax that varies from country to country and product to product. Previously, in the Bankinter Blog we explained what is the value added tax (VAT), now we tell you a comparison of VAT in EU countries.
VAT in Spain
In Spain VAT is paid differently depending on the product. Thus, the general VAT is 21% and there is a reduced rate of 10% and a super-reduced rate of 4%.
Some of the products with super-reduced VAT in Spain, at 4%, are:
Medicines.
- Books, newspapers and magazines that do not contain only or mainly advertising (excluding school material).
- Vehicles for people with reduced mobility and wheelchairs.
- Special or public subsidized housing.
- Compresses, tampons, panty liners, condoms and other non-medicinal contraceptives.
- Services of repair of vehicles for people with reduced mobility.
- Leases with option of purchase of subsidized housing.
- Telecare services, home help, day and night center, and residential care in concerted places.
In addition, until December 31, 2023, electricity supplies, natural gas and natural fuels will be taxed at 5%.
Comparison of VAT in Spain and Europe
Within the European Union, the countries with a lower general VAT rate than Spain are: Luxembourg (16%, lowered from 17% in 2023 to combat inflation); Malta (18%), Germany, Cyprus and Romania (19%, respectively) and Austria, Bulgaria, Slovakia, Estonia, France, Monaco, United Kingdom (20%, respectively).
In contrast, the countries with a higher general VAT rate than Spain are: Hungary (27%); Sweden, Denmark and Croatia (25%); Greece and Finland (24%); Portugal, Poland, and Ireland (23%); Italy and Slovenia (22%).
There are also countries with a general VAT rate equal to Spain and they are: Belgium, Latvia, Lithuania, the Netherlands and the Czech Republic.
The following table shows the different VAT rates by country:
| Country | General VAT in 2023 | Super-reduced/reduced VAT |
| Luxembourg | 16% | 3% / 7%, 13% (2023 only) |
| malt | 18% | 5%, 7% |
| Germany | 19% | 7% (Farmers have a 5.5% tax) |
| Cyprus | 19% | 5%, 9% |
| Romania | 19% | 5%, 9% |
| Austria | twenty% | 10%, 13% |
| Bulgaria | twenty% | 9% |
| Slovakia | twenty% | 0%, 10% |
| Estonia | twenty% | 5%, 9% |
| France | twenty% | 2.1% for medicines, newspapers and online news / 5.5% and 10% |
| Monaco | twenty% | 2.1% / 5.5%, 10%. |
| United Kingdom | twenty% | 5% |
| Belgium | twenty-one% | 6%, 12% |
| Spain | twenty-one% | 4% / 10% |
| Latvia | twenty-one% | 12% until December 2023, VAT on certain vegetables and greens is reduced from normal (21%) to 5%. |
| Lithuania | twenty-one% | 5%, 9% |
| Netherlands | twenty-one% | 9% |
| Czech Republic | twenty-one% | 10%, 15% |
| Slovenia | 22% | 5%, 9.5% |
| Italy | 22% | 4.8% / 5%, 10% |
| Ireland | 23% | 4.8% / 9%, 13.5% |
| Poland | 23% | 5%, 8%, |
| Portugal | 23% | 6%, 13%
In Madeira it is 5% and 12% and in the Azores 4% and 9%. |
| Finland | 24% | 10%, 14% |
| Greece | 24% | 13% |
| Croatia | 25% | 5%, 13%, |
| Denmark | 25% | Certain services (health and social care, education, cultural activities) that are exempt from VAT. |
| Sweden | 25% | 6%, 12% |
| Hungary | 27% | 5%, 18% |
Source: Own update from globalvatcompliance.com, VAT rates and ASD Group data.