Selling across Europe means navigating different VAT (value-added tax) obligations depending on where your customer is located and which marketplace you use.
Here’s a breakdown of how VAT works for sellers from the major EU countries and platforms.
⚠️ This information is intended for VAT-registered businesses in Europe.
What is the VAT Tax Rate in Europe #
If you sell to end customers in Germany, Austria, Poland, Slovakia, or the Czech Republic, and other countries, you must apply the local VAT rate based on the customer’s delivery address, not your own business location.
This is a key rule for cross-border commerce in the EU.
Here are the VAT rates for some European countries:
| Country | Standard VAT Rate | Common Reduced Rates |
| Germany | 19% | 7% for books, food, etc. Learn more |
| Austria | 20% | 13%, 10% for food and medicine. Learn more |
| Poland | 23% | 8%, 5% for essentials. Learn more |
| Czech Republic | 21% | 15%, 10% |
| Slovakia | 23% | 19%, 5%. Learn more |
| Italy | 22% | 10%, 5%, 4% for specific categories |
| United Kingdom | 20% | Under Article 29A and Schedule 7A of the VAT Act 1994, specific supplies qualify for a 5% reduced VAT rate. |
| Belgium | 21% | Belgium applies two reduced VAT rates: 6% (“First Reduced Rate”) and 12% (“Second Reduced Rate”), limited to specific transactions. |
| Ireland | 23% | Ireland’s VAT law (Section 46 and Schedule 3) provides three reduced rates on certain supplies: 13.5%, 9%, and 4.8%. |
| Spain | 21% | Article 91 of Spain’s VAT Act sets a 10% reduced rate for certain agricultural goods and a 4% super-reduced rate for items like books. |
| France | 20% | Article 278-0 bis of the French General Tax Code sets three reduced VAT rates: 10% (intermediate), 5.5% (primary reduced), and 2.1% (secondary reduced). |
| Netherlands | 21% | 9% for food, books, medicines, and hotel accommodation; 0% for exports and certain intra-EU supplies |
Thus, if you’re selling to Germany, the VAT tax rate in Germany will apply, usually 19%, unless you’re selling items like books or groceries.
If you’re selling cosmetics to Italian customers, make sure your pricing includes the correct VAT tax rate in Italy, which is usually 22% for beauty products.
VAT Handling Across Different Marketplaces #
Different platforms require different VAT setup processes. Here’s how it works across major marketplaces in EU:
Kaufland: No Manual VAT Percentage Input #
On Kaufland, sellers do not enter the exact VAT percentage. Instead, you select the applicable VAT category from a dropdown (e.g., Standard rate, Reduced rate, Super reduced rate).
The platform auto-calculates the correct rate based on the buyer’s country. This makes VAT compliance much easier for cross-border sellers.
ℹ️ Learn how you can use M2E Multichannel Connect to provide VAT information on eBay and Kaufland Marketplace.
Amazon, eBay, OTTO, OnBuy: Enter the Exact VAT Rate #
On eBay, OTTO and OnBuy sellers must manually specify the exact VAT percentage in either the product listing or account settings.
This means you need to be sure of the rate for each country you sell to, especially when managing multiple VAT rates in Europe.
Still, there's a nuance with Amazon - you can’t manually enter VAT there, as it’s automatically calculated based on the VAT identification number.
ℹ️ Learn more about VAT information in your Amazon Seller Central account, OnBuy, and eBay.
Shein Marketplace: VAT Is Included in the Price #
Shein requires sellers to set a gross price (price with VAT included). The platform then displays the VAT breakdown to the customer during checkout.
You don’t manage VAT display or invoicing; Shein handles it.
TikTok Shop: Gross Pricing, Auto-VAT if Verified #
On TikTok Shop, sellers must enter prices inclusive of VAT, even though the VAT amount is not shown in the order details. If a valid VAT ID is provided, TikTok calculates the VAT automatically based on that registration number.
