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WORLD: COUNTRIES VAT RATES – 2022

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WORLD VAT TAX RATES

Below are the current VAT rates for countries outside Europe that apply VAT/GST tax around the world. European VAT rates are updated on a separate page.

Should you wish to find out the EU VAT rates please click here.

Standard VAT rates and reduced VAT rates: Reduced VAT rates are subject to temporary reductions due to COVID19 and other factors. In many countries, there are multiple reduced VAT rates for different services or products.  Find out where and how you can search for VAT rates in our previous article by clicking Here .

 

World VAT/GST rates 2022

Country Standard VAT/GST Rate Reduced Rates
Algeria The standard sales tax (VAT) rate is 19%. A reduced rate of 9% applies to certain industries
Antigua and Barbuda No VAT tax but standard sales tax is set at 15%
Andorra The standard rate is 4.5%, although a higher rate of 9.5% applies to banking and financial services. Αndorra has three additional IGI rates: A reduced rate of 1%, a special rate of 2.5% and a supplementary rate of 9.5%.
Argentina The standard VAT rate is 21%. (enhanced rate of 27% for several metered utilities) Reduced rate of 10.5%
Armenia The standard VAT rate is 20%.
Aruba There is no VAT as such in Aruba, although there have been calls from the International Monetary Fund for the introduction of such a levy. (A combined rate “GST” can be considered to be at 6%
Australia Australia has a Goods and Services Tax (GST) which is equivalent to a VAT. The standard GST rate is 10%.
Azerbaijan The standard VAT rate is 18%.
Bahamas Standard VAT rate of 10%
Bahrain From January 1, 2019, the standard VAT rate is 10%.
Bangladesh The standard VAT rate is 15%. 10%, 7.5%, 5%, 2,4%, 2%
Barbados The standard VAT rate is 17.5% (Super rate of 22% mobile voice & text services) A reduced rate of 7.5% applies to the provision of hotel accommodation
Belize There is no value-added tax as such. Belize instead introduced a General Sales Tax in January 2006, which applies to a wide range of goods and services at a 12.5% rate.
Bermuda There is no VAT in Bermuda.
Bolivia The standard VAT (IVA) rate is 13% under Article 15 of the VAT Law
Botswana The standard VAT rate is 14%
Brazil Brazil imposes a state tax equivalent to VAT (ICMS) This rate is imposed by each state and is subject to a limit set by the federal senate. The rates can vary from 17% to 20% (Rio de Janeiro). and the highest rate can typically reach 25%. A 12% rate is generally applied to B2C interstate transactions. 7%
British Virgin Islands There is no VAT in the British Virgin Islands.
Brunei There is no VAT in Brunei.
Bulgaria The standard VAT rate is 20%. A reduced VAT rate of 9% applies to hotel accommodation and the tourism sector
Canada The standard federal Goods and Services Tax (GST) rate is 5%
Cayman Islands There is no VAT in the Cayman Islands.
Chile The standard VAT rate is 19%.
China The standard VAT rate is 13%, 9%, 6% Reduced rates of 5%, 2%, 1.5% and 0.5%.
Colombia The standard VAT (IVA – Impuesto sobre las Ventas) rate is 19% 5%
Cook Islands The standard VAT rate is 15%,
Costa Rica The standard VAT rate is 13%, the same rate as the sales tax. 4%,  2%, 1%
Curaçao There is no VAT in Curaçao. (Sales tax is 6% with enchanced rates of 7& and 9%)
UAE VAT is charged at 5% in the United Arab Emirates (UAE)
Ecuador The standard VAT rate is 12%
Egypt The VAT rate is 14% 5%
El Salvador The standard VAT (IVA) rate is 13%
Equatorial Guinea The standard VAT rate is 15% 6%
Ethiopia The standard VAT rate is 15%
Faroe Islands The standard VAT rate is 25%
Georgia The standard VAT rate is 18%
Gibraltar There is no VAT in Gibraltar.
Guatemala The standard VAT rate is 12%
Guernsey There is no VAT in Guernsey
Hong Kong There is no VAT or sales tax in Hong Kong.
India The primary rates of Indian GST are 0.25%, 1%, 3%, 5%, 12%, 18% and 28%
Indonesia The standard VAT rate is 11%
Iraq There is no VAT in Iraq. (The standard sales tax ranges from 10% to 300% on alcohol & tobacco
Isle of Man The standard rate of VAT is 20% 5%
Israel The standard VAT rate is 17%
Japan The standard (Consumption Tax) rate is 10% 8%
Jersey  The standard Goods and Services Tax (GST) rate is 5%.
Kazakhstan The standard rate of VAT is 12%
South Korea The standard VAT rate is 10%
Kuwait There is no VAT in Kuwait
Malaysia On September 1, 2018, the Government of Malaysia replaced the Goods and Services Tax (GST) with a 10% Sales Tax and a 6% Service Tax. 5% (Sales Tax)
Mauritania The standard VAT rate is 16%
Mauritius The standard VAT rate is 15%
Mexico The standard VAT rate is 16% 8%
Morocco The standard VAT rate is 20% 7% 10% 14%
New Zealand The standard Goods and Services Tax (GST) rate is 15%
Nigeria The standard VAT rate is 7.5%
Oman the standard VAT rate in Oman is 5%
Pakistan Pakistan does not have VAT. The standard sales tax rate is 17% Pakistan has a large number of reduced sales tax rates, including 1%, 1.5%, 2%, 5%, 7%, 7.5%, 8%, 10% and 16% (among others).
Panama The standard VAT rate in Panama is 7% and there are supplementary rates of 10% and 15%
Peru The standard VAT rate is 18%
Philippines The standard VAT rate is 12%
Puerto Rico The sales and use tax (SUT) rate is 11.5% 1%
Qatar There is no VAT in Qatar
Russia The standard VAT rate is 20% 10%
Saudi Arabia VAT is charged at 15%
Singapore The standard Goods and Services Tax (GST) rate is 7%
Taiwan The standard VAT rate is 5%
Tanzania The standard VAT rate is 18%
Thailand The standard VAT rate is 7% (Reduced from the standard 10% utill 30 September 2023)
Tunisia The standard VAT rate is 19% 7%, 13%
Turkey The standard VAT rate is 18% 1%, 8%
Turks and Caicos There is no VAT in Turks and Caicos
Ukraine The standard VAT rate is currently 20% 7%, 14%
United Kingdom The standard VAT rate is 20% 5%
Uruguay The standard VAT rate is 22% 10%
USA There is no VAT in the USA.
Uzbekistan The standard VAT rate is 15%
Vanuatu The standard VAT rate is 15%
Venezuela The standard VAT rate is 16% 8%
Vietnam The standard VAT rate is 10% Reduced VAT rates are 8% and 5%
*These rates are only indicative. Please use at your own discretion. Last update: 04/05/2022

Is there a difference between EU VAT rates and VAT rates in Countries outside Europe?

Yes, EU VAT rates must adhere to the EU directives for example the Standard VAT rate cannot be less than 15% when in countries outside the EU we can often find rates below 15% like Bahrain where the VAT rate is at 5%.

Is there a difference between VAT and GST?

There is a difference in the name of the tax as VAT stands for Value Added Tax while GST stands for Goods and Services Tax. Other than the name these two taxes share a lot of the same characteristics and they can be considered to have a similar effect. Most of the countries use VAT but some countries such as Australia and India use GST.

VAT has been used successfully for many years as it really provides a further incentive to companies to register and keep invoices. Value-added tax avoids the cascade effect of sales tax by taxing only the added value gained at each stage of production. For this reason, throughout the world, VAT has been gaining favour over traditional sales taxes.

 

World VAT Rates – Covid19

VAT rates & Covid19

Many countries have adopted temporary reduced VAT rates in order to help their economies bounce back from the COVID19 aftermath. Learn all about the latest updated by following our VAT news section by clicking here and by subscribing to our monthly VAT newsletter.

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