What is VAT?
The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption in the European Union. Thus, goods which are sold for export or services which are sold to customers abroad are normally not subject to VAT. Conversely imports are taxed to keep the system fair for EU producers so that they can compete on equal terms on the European market with suppliers situated outside the Union.
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VAT 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% |
