What is the standard VAT rate?
The standard VAT rate is the default rate of Value Added Tax (VAT) that is applied to most goods and services in a particular country.
What is the effective VAT rate?
The effective rate is the ratio of the VTTL (VAT Total Tax Liability) and the tax base.
In 2020, the average standard VAT rate in the European Union was 21, 52%, while the effective rate is 11, 62%. The difference is due amongst other to the reduced VAT rates and exemptions for certain goods and services.
Source VAT Gap: EU countries lost €93 billion in VAT revenues in 2020
Latest Posts in "European Union"
- European Commission VAT Gap Report 2025: EU Faces Billions in Lost VAT Revenue
- EGC – T-268/25 (Sampension Livsforsikring) -AG Opinion – 100% ownership rule permissible if proportionate against tax avoidance
- EGC VAT Case – T-233/25 (Mokoryte) – Judgment – Subcontractor Cannot Adjust VAT for Unpaid Assigned Claim from Insolvent Developer
- Ecofin Council: government aims to reduce the regulatory burden and limit access to VAT information
- EU Set to Grant Anti-Fraud Agencies Limited Access to VAT Data Under New Bill
