The VAT increase from 19% to 24% makes Romania one of the European countries with the highest VAT rates, behind Sweden, Denmark, Norway, Hungary, and Iceland, but ahead of other northern countries such as Finland, known for its high taxes. Europe also has fiscal havens, where VAT is zero, such is the case of Andorra.
In Europe the tax system differs significantly from one country to another. Scandinavian countries are known for their high taxes, an over 20% VAT. Whereas in Norway, Sweden, and Denmark VAT amounts to 25%, in Finland the standard rate is 22%.
Another country that levies record-high VAT is Hungary. Similarly to Romania, where the authorities decided to raise the VAT by 5% in order to reduce the budget deficit, its western neighbour Hungary raised the tax at the same rate, but from 20 to 25%. However, Budapest authorities acted faster, as part of an austerity package adopted last year.
The lowest VAT rates are to be found in Switzerland (7.6%), Cyprus (15%), Luxembourg (15%), the UK (17%) and Spain (18%).
The VAT increase from 19% to 24% makes Romania one of the European countries with the highest VAT rates, behind Sweden, Denmark, Norway, Hungary, and Iceland, but ahead of other northern countries such as Finland, known for its high taxes. Europe also has fiscal havens, where VAT is zero, such is the case of Andorra.
In Europe the tax system differs significantly from one country to another. Scandinavian countries are known for their high taxes, an over 20% VAT. Whereas in Norway, Sweden, and Denmark VAT amounts to 25%, in Finland the standard rate is 22%.
Another country that levies record-high VAT is Hungary. Similarly to Romania, where the authorities decided to raise the VAT by 5% in order to reduce the budget deficit, its western neighbour Hungary raised the tax at the same rate, but from 20 to 25%. However, Budape
