Czech VAT Rates and How They Compare Across the EU
Since 2024 Czechia has two rates: 21% standard and 12% reduced; books are exempt with the right to deduct. Across the EU, standard rates range from 17% (Luxembourg) to 27% (Hungary).
Since 1 January 2024 the Czech Republic applies two VAT rates: the standard 21% and a single reduced 12% (replacing the former 15% and 10%). Books (including e-books and audiobooks) are exempt with the right to deduct input VAT — effectively a zero rate.
What falls under the reduced 12% rate
Typically food, water supply, heat, medical devices, medicines, accommodation, catering services, admission to cultural and sports events, and newspapers and magazines. Always verify the classification of a specific supply in the annexes to the VAT Act — the boundaries can be surprisingly fine.
How the rest of the EU compares
EU law prescribes a minimum standard rate of 15%; there is no ceiling. The current range:
- lowest standard rate: Luxembourg 17%
- highest: Hungary 27%
- Czechia's neighbours: Germany 19%, Austria 20%, Slovakia 23%, Poland 23%
Member states may apply up to two reduced rates (min. 5%) and, in narrow cases, even lower ones. Rates keep changing — for example Finland cuts its reduced rate to 13.5% from 2026 and Lithuania raises its reduced rate to 12%.
Practical example
If you invoice accommodation in Czechia, you apply 12%. If you sell the same service via OSS to a customer in Austria, Austrian rules and rates apply — which is why an overview of other states' rates is essential for cross-border sales.
Current standard and reduced rates of all 27 states, including notes on announced changes, are in our VAT rates overview.