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WORLD: COUNTRIES VAT RATES – 2021

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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 2021

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
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%. 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.
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 12%
Bahrain From January 1, 2019, the standard VAT rate is 5%.
Bangladesh The standard VAT rate is 15%.
Barbados The standard VAT rate is 17.5% 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%, but charged on the VAT-inclusive price, giving an effective rate of 14.94%.
Botswana The standard VAT rate is 14%
Brazil The standard VAT rate varies between 17% and 25%, depending on the state and the type of goods or services. 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% Reduced rates of 5%, 2% 1%, 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.
Dubai VAT is charged at 5% in the United Arab Emirates (UAE), which includes Dubai.
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 standard Goods and Services Tax (GST) rates are 12% and 18% 5% and 0%
Indonesia The standard VAT rate has traditionally been 10%
Iraq There is no VAT in Iraq.
Isle of Man The standard rate of VAT is 20% 5%
Israel The standard VAT rate is 17%  7.5%
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%
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%
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 (VAT) rate is 15%
Nigeria The standard VAT rate is 7.5% (from February 1, 2020; 5% previously)
Oman the standard VAT rate in Oman is 5%
Pakistan The standard sales tax (VAT) rate is 17% 14% , 8%
Panama Panama’s equivalent to VAT is called ITBMS. From July 2010, the standard ITBMS rate is 7% 0
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% 7%
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 (VAT) rate is 7%
Taiwan The standard VAT rate is 5%
Thailand The standard VAT rate is 10% (Reduced to 7% utill 30 September 2021)
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 5% and 0%
*These rates are only indicative. Please use at your own discretion. Last update: 10/11/2021

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.

 

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