VAT Minimum Standard Rate Set Permanently at 15%

On 22 June 2018, the Council adopted a directive making the 15% minimum standard rate a permanent feature of a new VAT system.

The minimum standard rate prevents excessive divergence in VAT rates in the member states. This eliminates the risk of distortions of competition through lower VAT rates that would have an impact on cross-border shopping and trade.

A 15% minimum standard rate has been maintained on a provisional basis since VAT rules for the EU single market were first applied in 1993. It was last extended in May 2016 for two years, expiring on 31 December 2017.