- The EU mandates a minimum VAT rate of 15% with no upper limit, while Member States set their own rates and reduced-rate categories.
- Reduced rates, not less than 5%, apply to specific items like food, books, and medicines, with some countries having super-reduced or zero rates.
- Denmark uniquely applies a single standard VAT rate of 25% without reduced rates.
- Temporary VAT reductions have been used to address economic challenges, such as inflation or energy crises.
- Reduced rates often cover essentials like food, water, medical products, cultural events, and housing-related services.
Source: polishtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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