EU regional layer containing Council Directive 2006/112/EC content, Implementing Regulation 282/2011, and harmonized concepts across all 27 EU member states. Required foundation for any EU member state VAT skill.
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Built by Michael Cutajar and the OpenAccountants team. Written from the official sources it cites.
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Every figure is drawn from this Guide and cited to its source.
Scope
All 27 EU Member States
Primary Legislation
Council Directive 2006/112/EC of 28 November 2006 (consolidated to 14 April 2025)
Supporting Legislation
Directive 2022/542/EU (reduced rates reform); Implementing Regulation 282/2011
Source
EUR-Lex: https://eur-lex.europa.eu/eli/dir/2006/112/oj/eng
Contributor
Open Accounting Skills Registry
Version
1.0
Rates Current As Of
1 January 2026
Status
awaiting-validation
Note
This skill contains ONLY rules common to all EU member states. Country-specific rules (form boxes, national rates, filing deadlines, small business thresholds) are in the country skill. The country skill overrides this one where there is any conflict.
EU Member State List
AT Austria | BE Belgium | BG Bulgaria | HR Croatia | CY Cyprus | CZ Czech Republic | DK Denmark | EE Estonia | FI Finland | FR France | DE Germany | GR Greece | HU Hungary | IE Ireland | IT Italy | LV Latvia | LT Lithuania | LU Luxembourg | MT Malta | NL Netherlands | PL Poland | PT Portugal | RO Romania | SK Slovakia | SI Slovenia | ES Spain | SE SwedenDirective 2006/112/EC, Article 1
NOT EU (treat as non-EU / third country)
UK (left EU 31 January 2020); Norway, Switzerland, Iceland (EEA but not EU); USA, Canada, Australia, UAE, and all other non-EU countriesDirective 2006/112/EC, Article 1
Intra-Community Acquisition (ICA)
An ICA occurs when physical goods are dispatched or transported from one EU member state to another, between two VAT-registered businesses (B2B).Directive 2006/112/EC, Articles 2(1)(b), 20, 40-42
Place of ICA
The place of ICA is where transport endsArticle 40
Acquiring business liability
The acquiring business is liable for VAT via reverse chargeDirective 2006/112/EC, Articles 2(1)(b), 20, 40-42
Supplier invoicing
The supplier invoices at 0% (zero-rated intra-community supply)Directive 2006/112/EC, Articles 2(1)(b), 20, 40-42
Acquirer self-assessment
The acquirer self-assesses output VAT at their local standard rate AND claims the same amount as input VATDirective 2006/112/EC, Articles 2(1)(b), 20, 40-42
Net cash effect
Net cash effect = zero for a fully taxable businessDirective 2006/112/EC, Articles 2(1)(b), 20, 40-42
VAT number on invoice
The supplier must quote the customer's VAT number on the invoiceDirective 2006/112/EC, Articles 2(1)(b), 20, 40-42
EC Sales List reporting
The supplier must report the sale on an EC Sales List (ESL) / Recapitulative StatementDirective 2006/112/EC, Articles 2(1)(b), 20, 40-42
Supplier invoice wording
VAT exempt intra-Community supply -- Article 138(1) Directive 2006/112/ECArticle 138(1) Directive 2006/112/EC
General B2B place of supply
For services supplied B2B across EU borders, the place of supply is where the customer is established. Consequence: The supplier charges 0% VAT. The customer self-assesses output VAT at their local rate and claims the same as input VAT. Net effect = zero for a fully taxable business.Article 44
Mandatory application scenarios
All B2B cross-border services where Article 44 applies; Services supplied by a non-EU supplier to an EU VAT-registered customerDirective 2006/112/EC, Articles 44, 196
Supplier invoice wording
VAT exempt intra-Community supply of services -- Articles 44 and 196 Directive 2006/112/EC or simply Reverse chargeArticles 44 and 196 Directive 2006/112/EC
Reviewer flag
[T2] For any of these exception categories, flag for reviewer to confirm correct place of supply treatment.Directive 2006/112/EC, Articles 44, 196
Non-EU supplier to EU business rules
When a non-EU supplier (US, UK, CH, AU etc.) provides services to an EU VAT-registered business: Supplier invoices at 0% (no EU VAT charged); EU customer self-assesses output VAT at local rate; EU customer claims same amount as input VAT (if fully taxable); Net effect = zero for fully taxable business; This applies to: software subscriptions (AWS, Google, Microsoft, Notion, Slack), consulting services, digital services, IP licencesDirective 2006/112/EC, Articles 44, 196
EUR 10,000 distance selling threshold
10000Directive 2006/112/EC, Articles 33, 59c; OSS rules
Above threshold rule
If exceeded, must apply VAT at the rate of the customer's country (destination principle). Must either register in each destination country OR use the OSS (One Stop Shop).Directive 2006/112/EC, Articles 33, 59c; OSS rules
Below threshold rule
Below EUR 10,000: apply VAT at the supplier's own country rate.Directive 2006/112/EC, Articles 33, 59c; OSS rules
OSS
Allows a supplier to register in one EU member state and declare and pay VAT for all EU B2C distance sales through that single registration. Eliminates the need to register separately in every customer's country.Directive 2006/112/EC, Articles 33, 59c; OSS rules
Reviewer flag
[T2] If client makes significant B2C sales across EU: flag for reviewer to assess OSS registration requirement.Directive 2006/112/EC, Articles 33, 59c; OSS rules
EC Sales List filing requirement
Every VAT-registered business that makes intra-community supplies (ICA or B2B services under Article 44) must file an EC Sales List (called Recapitulative Statement in the Directive) reporting: Customer VAT numbers; Total value supplied to each customer; Period covered. Filing frequency and format varies by country -- check country skill.Directive 2006/112/EC, Articles 262-265
Local consumption VAT treatment
When a business pays for services consumed locally in another EU country (hotel, restaurant, taxi, conference admission), the VAT is charged locally by the supplier at their national rate. This is NOT reverse charge.Directive 2006/112/EC, Articles 52-54 (services); Article 32 (goods)
Foreign VAT recovery
The foreign VAT paid is an expense (generally irrecoverable unless the business files a cross-border VAT refund claim under Directive 2008/9/EC).Directive 2008/9/EC
Reviewer flag
[T2] Cross-border VAT refund claims: possible for EU businesses but requires separate process. Flag for reviewer if amounts are material.Directive 2006/112/EC, Articles 52-54 (services); Article 32 (goods)
Import VAT treatment
When physical goods are imported from outside the EU: Import VAT is charged at the border by Customs, not via reverse charge on the VAT return; Import VAT is paid to Customs at the point of entry; The business recovers import VAT as input tax via the VAT return (using the Customs entry document); Reverse charge on the VAT return is NOT used for physical goods importsDirective 2006/112/EC, Articles 70-71; national customs legislation
Reviewer flag
[T2] Process and documentation varies by country. Flag for reviewer to confirm: (a) client has the customs entry document, (b) import VAT amount is correct, (c) recovery is allowable.Directive 2006/112/EC, Articles 70-71; national customs legislation
VAT number validation requirement
Before applying zero rate (ICA or B2B services): Verify the customer's VAT number is valid using the EU VIES system: https://ec.europa.eu/taxation_customs/vies/; A valid VAT number is a prerequisite for zero-rating; If VIES validation fails, do not zero-rate -- apply local VAT rateDirective 2006/112/EC, Article 18
Blocked categories background
The Directive permits member states to maintain restrictions on input tax deduction that existed before 1979 (standstill clause). As a result, blocked categories vary significantly by country.Directive 2006/112/EC, Articles 176-177
Common categories blocked in most EU member states [T1]
Entertainment expenses (client meals, hospitality); Personal use itemsDirective 2006/112/EC, Articles 176-177
Categories blocked in some but not all member states [T2]
Motor vehicles (blocked in some, partially allowed in others); Fuel (varies by country and vehicle type); Accommodation (varies)Directive 2006/112/EC, Articles 176-177
Mandatory invoice elements
Date of issue; Sequential invoice number; Supplier VAT number; Customer VAT number (for B2B intra-community supplies); Full name and address of supplier and customer; Description of goods or services; Date of supply (if different from invoice date); Taxable amount per VAT rate; VAT rate applied; VAT amount in the currency of the invoice; For zero-rated intra-community supplies: reference to exemption (Article 138 or 44/196); For reverse charge: statement "Reverse charge"Directive 2006/112/EC, Articles 219a-237
Reviewer flag
[T2] E-invoicing mandates vary by country and are being introduced progressively across the EU. Check country skill for any mandatory e-invoicing requirements.Directive 2006/112/EC, Articles 219a-237
Prohibition list
NEVER zero-rate an intra-community supply without a valid customer VAT number verified on VIES; NEVER apply reverse charge to services consumed locally in another EU country (hotel, restaurant, taxi); NEVER apply reverse charge to physical goods imports -- import VAT is handled via Customs; NEVER use this skill alone -- always load the country skill alongside it; NEVER override the country skill with this base skill -- the country skill takes precedence on all national specifics; NEVER present EU-wide rules as applying without exception -- national derogations exist and are significant
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Legislation: Directive 2006/112/EC, Articles 96-99; Directive 2022/542/EU
Rate Structure Rules (apply in all member states) (Directive 2006/112/EC, Articles 96-99; Directive 2022/542/EU)
Rate Structure Rules (Directive 2006/112/EC, Articles 96-99; Directive 2022/542/EU)
| Rule | Detail |
|---|---|
| Standard rate minimum | Cannot be lower than 15% (Article 97) |
| Reduced rates | Maximum two reduced rates, neither below 5% |
| Super-reduced rate | Below 5% -- only permitted for specific categories under Annex III derogations |
| Zero rate | Permitted for specific categories under acquired rights |
| Parking rate | Minimum 12% -- applies in some member states to transitional categories |
2026 Rate Table -- All EU Member States (Directive 2006/112/EC, Articles 96-99; Directive 2022/542/EU)
| Country | Code | Standard | Reduced 1 | Reduced 2 | Super-Reduced | Zero |
|---|---|---|---|---|---|---|
| Austria | AT | 20% | 10% | 13% | -- | Yes |
| Belgium | BE | 21% | 6% | 12% | -- | Yes |
| Bulgaria | BG | 20% | 9% | -- | -- | Yes |
| Croatia | HR | 25% | 5% | 13% | -- | Yes |
| Cyprus | CY | 19% | 5% | 9% | -- | Yes |
| Czech Republic | CZ | 21% | 12% | -- | -- | Yes |
| Denmark | DK | 25% | -- | -- | -- | Yes |
| Estonia | EE | 24% | 9% | -- | -- | Yes |
| Finland | FI | 25.5% | 13.5% | -- | -- | Yes |
| France | FR | 20% | 5.5% | 10% | 2.1% | Yes |
| Germany | DE | 19% | 7% | -- | -- | Yes |
| Greece | GR | 24% | 6% | 13% | -- | Yes |
| Hungary | HU | 27% | 5% | 18% | -- | Yes |
| Ireland | IE | 23% | 9% | 13.5% | -- | Yes |
| Italy | IT | 22% | 5% | 10% | 4% | Yes |
| Latvia | LV | 21% | 12% | 5% | -- | Yes |
| Lithuania | LT | 21% | 5% | 12% | -- | Yes |
| Luxembourg | LU | 16% | 8% | -- | 3% | Yes |
| Malta | MT | 18% | 5% | 7% | -- | Yes |
| Netherlands | NL | 21% | 9% | -- | -- | Yes |
| Poland | PL | 23% | 5% | 8% | -- | Yes |
| Portugal | PT | 23% | 6% | 13% | -- | Yes |
| Romania | RO | 19% | 5% | 9% | -- | Yes |
| Slovakia | SK | 23% | 5% | 19% | -- | Yes |
| Slovenia | SI | 22% | 5% | 9.5% | -- | Yes |
| Spain | ES | 21% | 10% | -- | 4% | Yes |
| Sweden | SE | 25% | 6% | 12% | -- | Yes |
Rates current as of 1 January 2026. Always verify current rates against the European Commission's TEDB (Taxes in Europe Database) before filing.
Legislation: Directive 2006/112/EC, Articles 2(1)(b), 20, 40-42
Legislation: Directive 2006/112/EC, Articles 44, 196
These services are taxed where performed, not where the customer is established:
Exceptions to Article 44 (Directive 2006/112/EC, Articles 44, 196)
| Service Type | Place of Supply | Directive Article |
|---|---|---|
| Services related to immovable property | Where property is located | Article 47 |
| Passenger transport | Distance covered | Article 48 |
| Restaurant / catering services | Where physically carried out | Article 55 |
| Short-term hire of transport | Where vehicle put at disposal | Article 56 |
| Admission to cultural / sports events | Where event takes place | Article 53 |
Legislation: Directive 2006/112/EC, Articles 44, 196
Common examples: AWS, Google Workspace, Microsoft 365, Notion, Slack, Stripe fees, LinkedIn ads -- all trigger reverse charge when purchased by an EU VAT-registered business.
Legislation: Directive 2006/112/EC, Articles 33, 59c; OSS rules
Examples:
Employee stays in a Paris hotel -- French VAT charged, not reverse charge
Delegate attends a Berlin conference -- German VAT charged, not reverse charge
Business lunch in Amsterdam -- Dutch VAT charged, not reverse charge
Foreign VAT recovery — The foreign VAT paid is an expense (generally irrecoverable unless the business files a cross-border VAT refund claim under Directive 2008/9/EC). (Directive 2008/9/EC)
Reviewer flag — [T2] Cross-border VAT refund claims: possible for EU businesses but requires separate process. Flag for reviewer if amounts are material. (Directive 2006/112/EC, Articles 52-54 (services); Article 32 (goods))
Always check the country skill for the specific blocked categories for that jurisdiction.
Gap Report
| Area | Status |
|---|---|
| Core Directive rules | T1 -- sourced from EUR-Lex consolidated text |
| 2026 rate table | T1 -- sourced from European Commission TEDB and multiple verified sources |
| OSS / IOSS detail | T2 -- covered at high level only; detailed country implementation in country skills |
| Intrastat thresholds | T3 -- not covered; varies by country; add to country skills |
| SAF-T / e-invoicing mandates | T3 -- not covered; varies significantly by country |
| VAT groups | T3 -- not covered; varies by country |
| Capital goods adjustment period | T3 -- varies by country; covered in country skills |
Practitioner review required for: rate table accuracy (verify against EC TEDB), any T2 rules before advising clients.
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Depends on
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