New VAT rates: 23%, 19% and 5%

From 1 January 2025 the standard rate is 23%, with reduced rates of 19% and 5%.

AWhat changed

The consolidation package raised the standard VAT rate from 20% to 23%, introduced a reduced rate of 19% (e.g. other foodstuffs, electricity, soft drinks in restaurants) and extended the list of supplies at 5% (e.g. selected basic foodstuffs, medicines, books, accommodation, restaurant services).

BWhen

From 1 January 2025; some items were added to the 5% rate from 1 July 2025.

CWho it affects

All VAT payers.

DWhat to do

Check how rates are assigned to goods and services in your invoicing system and in eKasa.

Explanation

Which goods qualify for a reduced rate is determined by the annex to the VAT Act and the customs tariff; where in doubt, it is worth checking with a tax adviser or the Financial Administration.

Sources

Last checked: 12 October 2026 · How we correct errors