President Bush: "Freedom is the birthright of all mankind"
More than 40 million people had lost their lives by the time World War II ended in Europe on 8 May 1945.
President George W Bush laid a wreath at a US cemetery in the Netherlands, where 8,000 US servicemen are buried.
Commemorations also took place in Germany, France and the UK, where the Prince of Wales laid a wreath at the Cenotaph in London.
Germany was holding a two-day Festival of Democracy at Berlin's famous Brandenburg Gate, in a sign of reconciliation with past enemies and relief at the defeat of the Nazi dictatorship.
Battles were fought by normal men who did outstanding things
DW, Chicago, USA
VE Day: Your comments In pictures: VE Day
A planned march by neo-Nazis in Berlin was called off after thousands of anti-Fascist demonstrators gathered to try and stop them.
In a speech to parliament, President Horst Koehler said neo-Nazis "have no chance" today because the vast majority of Germans do not support them.
Victory's 'terrible price'
At the Margraten cemetery near Maastricht, President Bush and Dutch Queen Beatrix laid wreaths after a salute fired by a guard of honour and the playing of the Last Post.
"We commemorate a great victory for liberty. And the thousands of white marble crosses and Stars of David underscore the terrible price we paid for that victory," Mr Bush said.
We should not forget the things that brought us together, that united us
Russian President Vladimir Putin
Tough diplomatic test How the Allies won
"Americans and Europeans are continuing to work together and are bringing freedom and hope to places where it has long been denied. In Afghanistan, in Iraq, in Lebanon and across the broader Middle East," he said.
Dutch Prime Minister Jan Peter Balkenende paid tribute to the fallen US soldiers, saying "they gave us the most precious gift - freedom".
Military planes flew overhead in a "missing man" formation, where one plane breaks away from the group to signify a fallen comrade.
Mr Bush later arrived in Moscow, where he and other heads of state will attend Russia's colourful victory celebrations on Monday. From Moscow, Mr Bush will travel on to Georgia.
To mark Victory in Europe Day - or VE Day:
Germany held a special service at the Kaiser Wilhelm Memorial Church in Berlin and a ceremony at the main Soviet war memorial as well as a special session of the German parliament.
In France, President Jacques Chirac attended ceremony on the Champs-Elysees in Paris, where he handed out medals to veterans and met school children.
The Arc de Triomphe during the May 8, 2005, celebrations
Jacques Chirac and other officials
The 60th anniversary of  has been commemorated Sunday across Europe and the .

* In Germany:   and   attended a service at the Kaiser Wilhelm Memorial Church in  and a wreath-laying ceremony at the main Soviet war memorial.  VE Day is commemorated as Democracy Day in Germany, as Germans consider it to be the day when they, too, were liberated from .
* In the United Kingdom: 
** , wearing his uniform of  in the , laid a commemorative wreath at the Cenotaph.   is scheduled to attend the main commemorative ceremony to be held on July 10, 2005.
** At 19:00 UTC a Dakota DC3, from the Battle of Britain Memorial Flight based at RAF Coningsby, flew over the Palace of Westminster, Whitehall, and Trafalgar Square to mark the beginning of a televised BBC VE Day concert.
* In France:  Jacques Chirac laid a memorial wreath at the  at the .
* In the Netherlands:   and Queen  attended a memorial ceremony at a United States military cemetery near , where the  was sounded.
* In :   gave a controversial speech at a commemorative celebration of victory over fascism in , starting with "Comrades, ladies and gentlemen." He said that , a World War Two Croatian state, was "founded on crime" and is "a discrace and an insult to Croats." The role of  and  during the World War Two is still a point of debate in Croatia.
* In the United States: Former Sen.  spoke during a Sunday ceremony commemorating the anniversary of allied victory in Europe, May 8, 1945. The ceremony was held near the  in .

The 60th anniversary of  is scheduled to be celebrated in , and other successor states of the , on May 9, 2005.