All Blog Articles
resources-post-top-bg EU: Minimum standard VAT rate set at 15%

EU: Minimum standard VAT rate set at 15%

6th Jul;y 2019: The European Union’s minimum standard VAT rate has been set.

The EU’s Economic and Financial Council (ECOFIN) has adopted a directive, permanently fixing the minimum standard VAT rate throughout the EU at 15%.

The minimum rate has been maintained at 15% since VAT rules for the EU single market were applied in 1993. It was the last extended in May 2016 for 2 years.

The rate is aimed at preventing excessive divergence in VAT rates in the EU Member States. This reduces the risk of distortions of competition through lower VAT rates in some Member States that might impact cross-border shopping and trade.

Recently, the EU drafted new law amendments, impacting VAT legislation.

Need more information about reclaiming your VAT on your global business travel expenses? Get in contact with our team today!

We know that Indirect taxes such as VAT and GST can have a huge effect on your business. As VAT rates change sporadically keeping yourself informed can be difficult. Compliance is always crucial. That’s why our Indirect Tax Experts share their hand-picked news stories every day that you need to know. From breaking news to VAT changes and new EU legislation. We know that relevant information means better decision making. We aim to be your number 1 source for VAT and GST news.

See more Taxback International Articles

Switzerland: Mandatory VAT return e-filing in 2020

27th November 2019: Switzerland is one of the last countries to allow paper filing but the electronic submission of the Swiss VAT return will become obligatory from 1/1/2020.

Japan: Consumption Tax update (November 2019 update)

Hungary: Government Submits Tax Bill

20th November 2019: Hungary's Ministry of Finance announced that it has submitted to parliament the seventh and final part of its Economic Action Plan,