VAT rate changes in EU

Shopify Partner
161 8 22

Hi Everyone , 


New year is here and it brings changes to VAT rates in EU and European non-EU countries. Shopify will support most of the changes , i.e. standard VAT rates will be automatically changed.


Standard rates are raised in Estonia (to 22 percent from 20) and in Luxembourg (to 17 percent from 16). Reduced rates are changed in Czech republic (new 12 percent rate instead of 10 and 15 percent rates)  Luxembourg (14 and 8 percent rates are reintroduced, 3 percent rate is still valid for food , books and children clothing) 


If you sell books/magazines, food stuffs and use overrides , make sure that you apply changes manually :


For Czech republic , books/audio/e-books - 0 rate (separate decision), food items - mostly 12 percent (instead 10 and 15 percent)

For Luxembourg you may need to consider applicability of 14 and 8 percent reduced rates , instead of 13 and 7 percent (the country reverted to previous rates which were temporary reduced by 1 percent), 3 percent rate is still valid for books , food and certain children clothing


Switzerland raised VAT rates to 8.1 -standard rate (from 7.7)  , 2.6 reduced rate (from 2.5) - the best EU and UK VAT compliance solution.
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