Madeira has one of the lowest standard rates of VAT in the European Union. Normally the standard rate of VAT in a particular country is not relevant for international trade, as when delivering goods or services to a customer in another country the rate of VAT in the customer’s country is the relevant rate.
However from 1st July 2003 VAT on digitalised services has been charged at the rate of VAT applicable in the EU country where the company supplying the digitalised services is registered.
Standard VAT rates in the European Union
Country Rate
Madeira 15% Cyprus 15% Luxembourg 15% Spain 16% UK 17.5% Estonia 18% Lithuania 18% Malta 18% Serbia 18% Czech Rep. 19% Germany 19% Greece 19% Netherlands 19% Romania 19% Slovak Rep. 19% France 19.6% Austria 20% Bulgaria 20% Hungary 20% Italy 20% Slovenia 20% Belgium 21% Ireland 21% Latvia 21% Portugal 21% Croatia 22% Finland 22% Poland 22% Iceland 24.5% Denmark 25% Norway 25% Sweden 25%