A value-added tax (VAT or goods and services tax (GST), general consumption tax (GCT)) is a consumption tax that is levied on the value added at each stage of a product's production and distribution. VAT is similar to, and is often compared with, a sales tax. VAT is an indirect tax, because the consumer who ultimately bears the burden of the tax is not the entity that pays it. Specific goods and services are typically exempted in various jurisdictions.
Products exported to other countries are typically exempted from the tax, typically via a rebate to the exporter. VAT is usually implemented as a destination-based tax, where the tax rate is based on the location of the customer. VAT raises about a fifth of total tax revenues worldwide and among the members of the Organisation for Economic Co-operation and Development (OECD). As of January 2025, 175 of the 193 countries with UN membership employ a VAT, including all OECD members except the United States.
Tables
Example 1: Untaxed· Comparison with sales tax
A manufacturer spends $1.00 on raw materials and uses them to make a widget. The manufacturer sells the widget to a retailer for $1.20 (Gross margin: $0.20) The retailer sells the widget to an end consumer for $1.50 (Gross margin: $0.30)
Example 2: 10% sales tax· Comparison with sales tax
Multi-metric bars
World heat map
The end consumer pays 10% ($0.15) extra, compared to the no taxation scheme, and the government collects this amount.
The retailer pays no tax directly, but the retailer has to do the tax-related paperwork.
Suppliers and manufacturers have the administrative burden of providing correct state exemption certifications that the retailer must verify and maintain.
The manufacturer is responsible for ensuring that their buyers are only intermediates and not end consumers (otherwise the manufacturer charges the tax).
The retailer tracks what is taxable and what is not, along with the various tax rates in each location where it operates.
The end consumer pays 10% ($0.15) extra, compared to the no taxation scheme, and the government collects this amount.
The retailer pays no tax directly, but the retailer has to do the tax-related paperwork.
Suppliers and manufacturers have the administrative burden of providing correct state exemption certifications that the retailer must verify and maintain.
The manufacturer is responsible for ensuring that their buyers are only intermediates and not end consumers (otherwise the manufacturer charges the tax).
The retailer tracks what is taxable and what is not, along with the various tax rates in each location where it operates.
The raw materials producer sells $1 of raw materials for a widget to a manufacturer, checking that the buyer is not an end consumer
The manufacturer sells a widget to a retailer for $1.20, checking that the buyer is not an end consumer (Tax paid: $0, Gross margin: $0.20)
The retailer sells the widget to a consumer ($1.50 × 1.10) = $1.65 (Tax paid: $.15, Gross margin: $0.30)
The end consumer pays 10% ($0.15) extra, compared to the no taxation scheme, and the government collects this amount.
The retailer pays no tax directly, but the retailer has to do the tax-related paperwork.
Suppliers and manufacturers have the administrative burden of providing correct state exemption certifications that the retailer must verify and maintain.
The manufacturer is responsible for ensuring that their buyers are only intermediates and not end consumers (otherwise the manufacturer charges the tax).
The retailer tracks what is taxable and what is not, along with the various tax rates in each location where it operates.
Ranked list
The raw materials producer sells $1 of raw materials for a widget to a manufacturer, checking that the buyer is not an end consumer The manufacturer sells a widget to a retailer for $1.20, checking that the buyer is not an end consumer (Tax paid: $0, Gross margin: $0.20) The retailer sells the widget to a consumer ($1.50 × 1.10) = $1.65 (Tax paid: $.15, Gross margin: $0.30)
The end consumer pays 10% ($0.15) extra, compared to the no taxation scheme, and the government collects this amount. The retailer pays no tax directly, but the retailer has to do the tax-related paperwork. Suppliers and manufacturers have the administrative burden of providing correct state exemption certifications that the retailer must verify and maintain. The manufacturer is responsible for ensuring that their buyers are only intermediates and not end consumers (otherwise the manufacturer charges the tax). The retailer tracks what is taxable and what is not, along with the various tax rates in each location where it operates.
Example 3: 10% Value-Added Tax· Comparison with sales tax
Multi-metric bars
World heat map
The taxes paid by both the manufacturer and the retailer to the government are 10% of the values added by their respective business practices, i.e. the 10% of the difference between their buying price and selling price. For example, the value added by the manufacturer is $1.20 minus $1.00 = $0.20. The manufacturer pays 10% of $.20 = $0.02.
The consumer has paid, and the government received, the same dollar amount as with a sales tax. The gross margins, in dollar amount, remain the same as with a sales tax. The end consumer pays the same final price as with a sales tax.
At each stage of production, the seller collects a tax and the buyer pays that tax. The buyer can then be reimbursed for paying the tax, but only by successfully selling the value-added product to the buyer at the next stage. If the retailer fails to sell some of its inventory, it suffers a greater financial loss in the VAT scheme, in comparison to the sales tax regulatory system, by having paid a higher price for the product it failed to sell.
The gross margins of the manufacturer and retailer are a smaller percent of the total perspective. If the cost of raw material production were shown, this would also be true of the raw material supplier's gross margin on a percentage basis.
Each business is responsible for handling the necessary tax paperwork, and incur the increased accounting costs for collecting the tax. However, businesses have no obligation to request certifications from intermediate purchasers (who are not end consumers), or to provide such certifications to their suppliers.
The taxes paid by both the manufacturer and the retailer to the government are 10% of the values added by their respective business practices, i.e. the 10% of the difference between their buying price and selling price. For example, the value added by the manufacturer is $1.20 minus $1.00 = $0.20. The manufacturer pays 10% of $.20 = $0.02.
The consumer has paid, and the government received, the same dollar amount as with a sales tax. The gross margins, in dollar amount, remain the same as with a sales tax. The end consumer pays the same final price as with a sales tax.
At each stage of production, the seller collects a tax and the buyer pays that tax. The buyer can then be reimbursed for paying the tax, but only by successfully selling the value-added product to the buyer at the next stage. If the retailer fails to sell some of its inventory, it suffers a greater financial loss in the VAT scheme, in comparison to the sales tax regulatory system, by having paid a higher price for the product it failed to sell.
The gross margins of the manufacturer and retailer are a smaller percent of the total perspective. If the cost of raw material production were shown, this would also be true of the raw material supplier's gross margin on a percentage basis.
Each business is responsible for handling the necessary tax paperwork, and incur the increased accounting costs for collecting the tax. However, businesses have no obligation to request certifications from intermediate purchasers (who are not end consumers), or to provide such certifications to their suppliers.
The raw materials producer sells $1 of raw materials for a widget to a manufacturer for ($1 × 1.10) = $1.10. (Tax paid: $0.10)
The manufacturer sells a widget to a retailer for ($1.20 × 1.10) = $1.32 (Tax paid: $0.12 - $0.10 = $0.02, Gross margin: $1.32 – $1.10 – $0.02 = $0.20)
The retailer sells a widget to a consumer for ($1.50 × 1.10) = $1.65 (Tax paid: $0.15 minus $0.12) = $0.03, Gross margin: $1.65 – $1.32 – $0.03 = $0.30)
The taxes paid by both the manufacturer and the retailer to the government are 10% of the values added by their respective business practices, i.e. the 10% of the difference between their buying price and selling price. For example, the value added by the manufacturer is $1.20 minus $1.00 = $0.20. The manufacturer pays 10% of $.20 = $0.02.
The consumer has paid, and the government received, the same dollar amount as with a sales tax. The gross margins, in dollar amount, remain the same as with a sales tax. The end consumer pays the same final price as with a sales tax.
At each stage of production, the seller collects a tax and the buyer pays that tax. The buyer can then be reimbursed for paying the tax, but only by successfully selling the value-added product to the buyer at the next stage. If the retailer fails to sell some of its inventory, it suffers a greater financial loss in the VAT scheme, in comparison to the sales tax regulatory system, by having paid a higher price for the product it failed to sell.
The gross margins of the manufacturer and retailer are a smaller percent of the total perspective. If the cost of raw material production were shown, this would also be true of the raw material supplier's gross margin on a percentage basis.
Each business is responsible for handling the necessary tax paperwork, and incur the increased accounting costs for collecting the tax. However, businesses have no obligation to request certifications from intermediate purchasers (who are not end consumers), or to provide such certifications to their suppliers.
Ranked list
The raw materials producer sells $1 of raw materials for a widget to a manufacturer for ($1 × 1.10) = $1.10. (Tax paid: $0.10) The manufacturer sells a widget to a retailer for ($1.20 × 1.10) = $1.32 (Tax paid: $0.12 - $0.10 = $0.02, Gross margin: $1.32 – $1.10 – $0.02 = $0.20) The retailer sells a widget to a consumer for ($1.50 × 1.10) = $1.65 (Tax paid: $0.15 minus $0.12) = $0.03, Gross margin: $1.65 – $1.32 – $0.03 = $0.30)
The taxes paid by both the manufacturer and the retailer to the government are 10% of the values added by their respective business practices, i.e. the 10% of the difference between their buying price and selling price. For example, the value added by the manufacturer is $1.20 minus $1.00 = $0.20. The manufacturer pays 10% of $.20 = $0.02. The consumer has paid, and the government received, the same dollar amount as with a sales tax. The gross margins, in dollar amount, remain the same as with a sales tax. The end consumer pays the same final price as with a sales tax. At each stage of production, the seller collects a tax and the buyer pays that tax. The buyer can then be reimbursed for paying the tax, but only by successfully selling the value-added product to the buyer at the next stage. If the retailer fails to sell some of its inventory, it suffers a greater financial loss in the VAT scheme, in comparison to the sales tax regulatory system, by having paid a higher price for the product it failed to sell. The gross margins of the manufacturer and retailer are a smaller percent of the total perspective. If the cost of raw material production were shown, this would also be true of the raw material supplier's gross margin on a percentage basis. Each business is responsible for handling the necessary tax paperwork, and incur the increased accounting costs for collecting the tax. However, businesses have no obligation to request certifications from intermediate purchasers (who are not end consumers), or to provide such certifications to their suppliers.
Breakdown of tax revenues on VAT 2017/18
Multi-metric bars
World heat map
Domestic VAT
Domestic VAT
Type of tax
Domestic VAT
Amounts in Rands
R 336.2 bn
Percentage of total
68.8%
Import VAT
Import VAT
Type of tax
Import VAT
Amounts in Rands
R 152.8 bn
Percentage of total
31.2%
VAT Refunds
VAT Refunds
Type of tax
VAT Refunds
Amounts in Rands
(R 191.0 bn)
Percentage of total
-39.1%
Total
Total
Type of tax
Total
Amounts in Rands
R 298 bn
Percentage of total
100%
Ranked list
Type of tax
Amounts in Rands
Percentage of total
Domestic VAT
R 336.2 bn
68.8%
Import VAT
R 152.8 bn
31.2%
VAT Refunds
(R 191.0 bn)
-39.1%
Total
R 298 bn
100%
· Examples by continent › European Union countries
Multi-metric bars
World heat map
MehrwertSteuer/UmsatzSteuer
MehrwertSteuer/UmsatzSteuer
Country
Austria
Standard rate (current)
20%
Reduced rate (current)
10% for rental for the purpose of habitation, food, garbage collection, most transportation, etc.13% for plants, live animals and animal food, art, wine (if bought directly from the winemaker), etc.
Abbreviation
MwSt./USt.
Local name
MehrwertSteuer/UmsatzSteuer
Belasting over de Toegevoegde Waarde Taxe sur la Valeur Ajoutée MehrwertSteuer
Belasting over de Toegevoegde Waarde Taxe sur la Valeur Ajoutée MehrwertSteuer
Country
Belgium
Standard rate (current)
21%
Reduced rate (current)
12% or 6% (for food or live necessary consumables) or 0% in some cases
Abbreviation
BTW TVA MwSt
Local name
Belasting over de Toegevoegde Waarde Taxe sur la Valeur Ajoutée MehrwertSteuer
Данък Добавена Cтойност
Данък Добавена Cтойност
Country
Bulgaria
Standard rate (current)
20%
Reduced rate (current)
9% (hotels) or 0%
Abbreviation
ДДС
Local name
Данък Добавена Cтойност
Porez na Dodanu Vrijednost
Porez na Dodanu Vrijednost
Country
Croatia
Standard rate (current)
25%
Reduced rate (current)
13% (since 1 January 2014) or 5% (since 1 January 2013)
Abbreviation
PDV
Local name
Porez na Dodanu Vrijednost
Φόρος Προστιθέμενης Αξίας
Φόρος Προστιθέμενης Αξίας
Country
Cyprus
Standard rate (current)
19%
Reduced rate (current)
5% (8% for taxi and bus transportation)
Abbreviation
ΦΠΑ
Local name
Φόρος Προστιθέμενης Αξίας
Daň z přidané hodnoty
Daň z přidané hodnoty
Country
Czech Republic
Standard rate (current)
21%
Reduced rate (current)
15% (food, public transport) or 10% (medicines, pharmaceuticals, books and baby foodstuffs)
Abbreviation
DPH
Local name
Daň z přidané hodnoty
Meromsætningsafgift
Meromsætningsafgift
Country
Denmark
Standard rate (current)
25%
Reduced rate (current)
0%
Abbreviation
Moms
Local name
Meromsætningsafgift
Käibemaks
Käibemaks
Country
Estonia
Standard rate (current)
24%
Reduced rate (current)
9%
Abbreviation
Km
Local name
Käibemaks
Arvonlisävero (Finnish)Mervärdesskatt (Swedish)
Arvonlisävero (Finnish)Mervärdesskatt (Swedish)
Country
Finland
Standard rate (current)
25.5%
Reduced rate (current)
14% (groceries, restaurants, medicines, cultural services and events, passenger transport, hotels, books) or 10% (newspapers and magazines )
Abbreviation
ALVMoms
Local name
Arvonlisävero (Finnish)Mervärdesskatt (Swedish)
Taxe sur la Valeur Ajoutée
Taxe sur la Valeur Ajoutée
Country
France
Standard rate (current)
20%
Reduced rate (current)
10% or 5.5% or 2.1%
Abbreviation
TVA
Local name
Taxe sur la Valeur Ajoutée
MehrwertSteuer/UmsatzSteuer
MehrwertSteuer/UmsatzSteuer
Country
Germany
Standard rate (current)
19% (Heligoland 0%)
Reduced rate (current)
7%[citation needed] for foodstuffs (except luxury-), books, flowers etc., 0% for postage stamps. (Heligoland always 0%)
Abbreviation
MwSt./USt.
Local name
MehrwertSteuer/UmsatzSteuer
Φόρος Προστιθέμενης Αξίας
Φόρος Προστιθέμενης Αξίας
Country
Greece
Standard rate (current)
24%(16% on Aegean islands)
Reduced rate (current)
13% (6.5% for hotels, books and pharmaceutical products)(8% and 4% on Aegean islands)
Abbreviation
ΦΠΑ
Local name
Φόρος Προστιθέμενης Αξίας
Általános Forgalmi Adó
Általános Forgalmi Adó
Country
Hungary
Standard rate (current)
27%
Reduced rate (current)
18% (milk and dairy products, cereal products, hotels, tickets to outdoor music events) or 5% (pharmaceutical products, medical equipment, books and periodicals, some meat products, district heating, heating based on renewable sources, live music performance under certain circumstances) or 0% (postal services, medical services, mother's milk, etc.)
10% (hotels, bars, restaurants and other tourism products, certain foodstuffs, plant protection products and special works of building restoration, home-use utilities: electricity, gas used for cooking and water) or 4% (e.g. grocery staples, daily or periodical press and books, works for the elimination of architectural barriers, some kinds of seeds, fertilizers)
Abbreviation
IVA
Local name
Imposta sul Valore Aggiunto
Pievienotās Vērtības Nodoklis
Pievienotās Vērtības Nodoklis
Country
Latvia
Standard rate (current)
21%
Reduced rate (current)
12% or 0%
Abbreviation
PVN
Local name
Pievienotās Vērtības Nodoklis
Pridėtinės Vertės Mokestis
Pridėtinės Vertės Mokestis
Country
Lithuania
Standard rate (current)
21%
Reduced rate (current)
9% or 5%
Abbreviation
PVM
Local name
Pridėtinės Vertės Mokestis
Taxe sur la Valeur AjoutéeMehrwertsteuer/UmsatzsteuerMéiwäert Steier
Taxe sur la Valeur AjoutéeMehrwertsteuer/UmsatzsteuerMéiwäert Steier
Country
Luxembourg
Standard rate (current)
17%
Reduced rate (current)
14% on certain wines, 8% on public utilities, or 3% on books and press, food (including restaurant meals), children's clothing, hotel stays, and public transit
Abbreviation
TVAMwSt./UStMS
Local name
Taxe sur la Valeur AjoutéeMehrwertsteuer/UmsatzsteuerMéiwäert Steier
Taxxa tal-Valur MiżjudValue Added Tax
Taxxa tal-Valur MiżjudValue Added Tax
Country
Malta
Standard rate (current)
18%
Reduced rate (current)
7% or 5% or 0%
Abbreviation
TVMVAT
Local name
Taxxa tal-Valur MiżjudValue Added Tax
Belasting over de Toegevoegde Waarde/ Omzetbelasting/ Voorbelasting
Belasting over de Toegevoegde Waarde/ Omzetbelasting/ Voorbelasting
Country
Netherlands
Standard rate (current)
21%
Reduced rate (current)
9% for special categories of products and services like food, medicine and art.
0% for products and services that are already taxed in other countries or systems, for excise goods, and for fish.
Abbreviation
BTW/Ob
Local name
Belasting over de Toegevoegde Waarde/ Omzetbelasting/ Voorbelasting
Podatek od Towarów i Usług
Podatek od Towarów i Usług
Country
Poland
Standard rate (current)
23%
Reduced rate (current)
8% for beauty services, renovation and construction services, food services, food, tickets for public transportation (domestic connections).
5% for food, some agricultural products, medical services, cultural services, sports and recreation services.
0% for imported goods not covered by customs duties, tickets for public transportation (international connections) and services for repairing, processing or refining raw materials.
Abbreviation
PTU
Local name
Podatek od Towarów i Usług
Imposto sobre o Valor Acrescentado
Imposto sobre o Valor Acrescentado
Country
Portugal
Standard rate (current)
23%22% in Madeira and 18% in Azores
Reduced rate (current)
13% for processed food, provision of services, and others such as oil and diesel, climate action focused goods and musical instruments and 6% for food products, agricultural services, and other deemed essential products such as farmaceutical products and public transport12% or 5% in Madeira and 9% or 4% in Azores
Abbreviation
IVA
Local name
Imposto sobre o Valor Acrescentado
Taxa pe Valoarea Adăugată
Taxa pe Valoarea Adăugată
Country
Romania
Standard rate (current)
19%
Reduced rate (current)
9% (food and non-alcoholic drinks) or 5% (buyers of new homes under special conditions)
Abbreviation
TVA
Local name
Taxa pe Valoarea Adăugată
Daň z Pridanej Hodnoty
Daň z Pridanej Hodnoty
Country
Slovakia
Standard rate (current)
23%
Reduced rate (current)
19% or 5%
Abbreviation
DPH
Local name
Daň z Pridanej Hodnoty
Davek na Dodano Vrednost
Davek na Dodano Vrednost
Country
Slovenia
Standard rate (current)
22%
Reduced rate (current)
9.5%
Abbreviation
DDV
Local name
Davek na Dodano Vrednost
Impuesto sobre el Valor AñadidoImpuesto General Indirecto Canario
Impuesto sobre el Valor AñadidoImpuesto General Indirecto Canario
Country
Spain
Standard rate (current)
21%7% in Canary Islands (not part of EU VAT area)
Reduced rate (current)
10% (10% from 1 September 2012) or 4%3% or 0% in Canary Islands
Abbreviation
IVAIGIC
Local name
Impuesto sobre el Valor AñadidoImpuesto General Indirecto Canario
Mervärdes- och OMSättningsskatt
Mervärdes- och OMSättningsskatt
Country
Sweden
Standard rate (current)
25%
Reduced rate (current)
12% (e.g. food, hotels and restaurants), 6% (e.g. books, passenger transport, cultural events and activities), 0% (e.g. insurance, financial services, health care, dental care, prescription drugs, immovable property)
Abbreviation
MOMS
Local name
Mervärdes- och OMSättningsskatt
Ranked list
Country
Standard rate (current)
Reduced rate (current)
Abbreviation
Local name
Austria
20%
10% for rental for the purpose of habitation, food, garbage collection, most transportation, etc.13% for plants, live animals and animal food, art, wine (if bought directly from the winemaker), etc.
MwSt./USt.
MehrwertSteuer/UmsatzSteuer
Belgium
21%
12% or 6% (for food or live necessary consumables) or 0% in some cases
BTW TVA MwSt
Belasting over de Toegevoegde Waarde Taxe sur la Valeur Ajoutée MehrwertSteuer
Bulgaria
20%
9% (hotels) or 0%
ДДС
Данък Добавена Cтойност
Croatia
25%
13% (since 1 January 2014) or 5% (since 1 January 2013)
PDV
Porez na Dodanu Vrijednost
Cyprus
19%
5% (8% for taxi and bus transportation)
ΦΠΑ
Φόρος Προστιθέμενης Αξίας
Czech Republic
21%
15% (food, public transport) or 10% (medicines, pharmaceuticals, books and baby foodstuffs)
DPH
Daň z přidané hodnoty
Denmark
25%
0%
Moms
Meromsætningsafgift
Estonia
24%
9%
Km
Käibemaks
Finland
25.5%
14% (groceries, restaurants, medicines, cultural services and events, passenger transport, hotels, books) or 10% (newspapers and magazines )
ALVMoms
Arvonlisävero (Finnish)Mervärdesskatt (Swedish)
France
20%
10% or 5.5% or 2.1%
TVA
Taxe sur la Valeur Ajoutée
Germany
19% (Heligoland 0%)
7%[citation needed] for foodstuffs (except luxury-), books, flowers etc., 0% for postage stamps. (Heligoland always 0%)
MwSt./USt.
MehrwertSteuer/UmsatzSteuer
Greece
24%(16% on Aegean islands)
for hotels, books and pharmaceutical products)(8% and 4% on Aegean islands)
ΦΠΑ
Φόρος Προστιθέμενης Αξίας
Hungary
27%
18% (milk and dairy products, cereal products, hotels, tickets to outdoor music events) or 5% (pharmaceutical products, medical equipment, books and periodicals, some meat products, district heating, heating based on renewable sources, live music performance under certain circumstances) or 0% (postal services, medical services, mother's milk, etc.)
10% (hotels, bars, restaurants and other tourism products, certain foodstuffs, plant protection products and special works of building restoration, home-use utilities: electricity, gas used for cooking and water) or 4% (e.g. grocery staples, daily or periodical press and books, works for the elimination of architectural barriers, some kinds of seeds, fertilizers)
IVA
Imposta sul Valore Aggiunto
Latvia
21%
12% or 0%
PVN
Pievienotās Vērtības Nodoklis
Lithuania
21%
9% or 5%
PVM
Pridėtinės Vertės Mokestis
Luxembourg
17%
14% on certain wines, 8% on public utilities, or 3% on books and press, food (including restaurant meals), children's clothing, hotel stays, and public transit
TVAMwSt./UStMS
Taxe sur la Valeur AjoutéeMehrwertsteuer/UmsatzsteuerMéiwäert Steier
Malta
18%
7% or 5% or 0%
TVMVAT
Taxxa tal-Valur MiżjudValue Added Tax
Netherlands
21%
9% for special categories of products and services like food, medicine and art. 0% for products and services that are already taxed in other countries or systems, for excise goods, and for fish.
BTW/Ob
Belasting over de Toegevoegde Waarde/ Omzetbelasting/ Voorbelasting
Poland
23%
8% for beauty services, renovation and construction services, food services, food, tickets for public transportation (domestic connections). 5% for food, some agricultural products, medical services, cultural services, sports and recreation services. 0% for imported goods not covered by customs duties, tickets for public transportation (international connections) and services for repairing, processing or refining raw materials.
PTU
Podatek od Towarów i Usług
Portugal
23%22% in Madeira and 18% in Azores
13% for processed food, provision of services, and others such as oil and diesel, climate action focused goods and musical instruments and 6% for food products, agricultural services, and other deemed essential products such as farmaceutical products and public transport12% or 5% in Madeira and 9% or 4% in Azores
IVA
Imposto sobre o Valor Acrescentado
Romania
19%
9% (food and non-alcoholic drinks) or 5% (buyers of new homes under special conditions)
TVA
Taxa pe Valoarea Adăugată
Slovakia
23%
19% or 5%
DPH
Daň z Pridanej Hodnoty
Slovenia
22%
9.5%
DDV
Davek na Dodano Vrednost
Spain
21%7% in Canary Islands (not part of EU VAT area)
10% (10% from 1 September 2012) or 4%3% or 0% in Canary Islands
IVAIGIC
Impuesto sobre el Valor AñadidoImpuesto General Indirecto Canario
Sweden
25%
food, hotels and restaurants), 6% (e.g. books, passenger transport, cultural events and activities), 0% (e.g. insurance, financial services, health care, dental care, prescription drugs, immovable property)
MOMS
Mervärdes- och OMSättningsskatt
· Examples by continent › Non-European Union countries
Multi-metric bars
World heat map
TVSH = Tatimi mbi Vlerën e Shtuar
TVSH = Tatimi mbi Vlerën e Shtuar
Country
Albania
Standard rate (current)
20%
Reduced rate (current)
6% (accommodation services) or 0% (postal, medical, dental and welfare services)
Local name
TVSH = Tatimi mbi Vlerën e Shtuar
TVA = Taxe sur la Valeur Ajoutée (الضريبة على القيمة المضافة)
TVA = Taxe sur la Valeur Ajoutée (الضريبة على القيمة المضافة)
Country
Algeria
Standard rate (current)
19%
Reduced rate (current)
The reduced VAT rate in Algeria is currently 9%. It applies to basic goods and services such as food, medicine, and transportation.
Local name
TVA = Taxe sur la Valeur Ajoutée (الضريبة على القيمة المضافة)
IGI = Impost General Indirecte
IGI = Impost General Indirecte
Country
Andorra
Standard rate (current)
4.5%
Reduced rate (current)
1%
Local name
IGI = Impost General Indirecte
IVA = Imposto Sobre o Valor Acrescentado
IVA = Imposto Sobre o Valor Acrescentado
Country
Angola
Standard rate (current)
14%
Reduced rate (current)
5% which applies to the import and supply of certain goods (products of the Basic Basket listed in Annex I of the VAT Code and agricultural inputs)
0% fresh food, medical services, medicines and medical devices, education services, childcare, water and sewerage, government taxes & permits and many government charges, precious metals, second-hand goods and many other types of goods. Rebates for exported goods and GST taxed business inputs are also available
Local name
GST = Goods and Services Tax
ƏDV = Əlavə dəyər vergisi
ƏDV = Əlavə dəyər vergisi
Country
Azerbaijan
Standard rate (current)
18%
Reduced rate (current)
10.5% or 0%
Local name
ƏDV = Əlavə dəyər vergisi
VAT = Value Added Tax
VAT = Value Added Tax
Country
Bahamas
Standard rate (current)
12%
Reduced rate (current)
12% or 0% (including but not limited to exports of goods or services, services to a foreign going vessel providing international commercial services, consumable goods for commercially scheduled foreign going vessels/aircraft, copyright, etc.)
Local name
VAT = Value Added Tax
(VAT) ضريبة القيمة المضافة
(VAT) ضريبة القيمة المضافة
Country
Bahrain
Standard rate (current)
10%
Reduced rate (current)
0% (pharmacies and medical services, road transport, education service, Oil and gas derivatives, Vegetables and fruits, National exports)
Local name
(VAT) ضريبة القيمة المضافة
Musok = Mullo songzojon kor মূসক = "মূল্য সংযোজন কর"
Musok = Mullo songzojon kor মূসক = "মূল্য সংযোজন কর"
Country
Bangladesh
Standard rate (current)
15%
Reduced rate (current)
4% for supplier, 4.5% for ITES, 5% for electricity, 5.5% for construction firm, etc.
Local name
Musok = Mullo songzojon kor মূসক = "মূল্য সংযোজন কর"
VAT = Value Added Tax
VAT = Value Added Tax
Country
Barbados
Standard rate (current)
17.5%
Local name
VAT = Value Added Tax
ПДВ = Падатак на дададзеную вартасьць
ПДВ = Падатак на дададзеную вартасьць
Country
Belarus
Standard rate (current)
20%
Reduced rate (current)
10% or 0.5%
Local name
ПДВ = Падатак на дададзеную вартасьць
?
?
Country
Belize
Standard rate (current)
12.5%
Local name
?
?
?
Country
Benin
Standard rate (current)
18%
Local name
?
IVA = Impuesto al Valor Agregado
IVA = Impuesto al Valor Agregado
Country
Bolivia
Standard rate (current)
13%
Local name
IVA = Impuesto al Valor Agregado
PDV = Porez na dodanu vrijednost
PDV = Porez na dodanu vrijednost
Country
Bosnia and Herzegovina
Standard rate (current)
17%
Local name
PDV = Porez na dodanu vrijednost
?
?
Country
Botswana
Standard rate (current)
14%
Local name
?
IPI – 20% = Imposto sobre produtos industrializados (Tax over industrialized products) – Federal Tax ICMS – 17 to 25% = Imposto sobre circulação e serviços (tax over commercialization and services) – State Tax ISS – 2 to 5% = Imposto sobre serviço de qualquer natureza (tax over any service) – City tax
IPI – 20% = Imposto sobre produtos industrializados (Tax over industrialized products) – Federal Tax ICMS – 17 to 25% = Imposto sobre circulação e serviços (tax over commercialization and services) – State Tax ISS – 2 to 5% = Imposto sobre serviço de qualquer natureza (tax over any service) – City tax
Country
Brazil
Standard rate (current)
20% (IPI) + 19% (ICMS) average + 3% (ISS) average
Reduced rate (current)
0%
Local name
IPI – 20% = Imposto sobre produtos industrializados (Tax over industrialized products) – Federal Tax ICMS – 17 to 25% = Imposto sobre circulação e serviços (tax over commercialization and services) – State Tax ISS – 2 to 5% = Imposto sobre serviço de qualquer natureza (tax over any service) – City tax
?
?
Country
Burkina Faso
Standard rate (current)
18%
Local name
?
?
?
Country
Burundi
Standard rate (current)
18%
Local name
?
?
?
Country
Cambodia
Standard rate (current)
10%
Local name
?
?
?
Country
Cameroon
Standard rate (current)
19.25%
Local name
?
GST = Goods and Services TaxTPS = Taxe sur les produits et servicesHST = Harmonized Sales TaxPST = Provincial Sales Tax
GST = Goods and Services TaxTPS = Taxe sur les produits et servicesHST = Harmonized Sales TaxPST = Provincial Sales Tax
Country
Canada
Standard rate (current)
5% GST + 0–9.975% PST or 13-15% HST depending on province.
Reduced rate (current)
0% on GST or HST for Prescription drugs, medical devices, basic groceries, agricultural/fishing products, exported or foreign goods, services and travel. Other exemptions exist for PSTs and vary by province.
Local name
GST = Goods and Services TaxTPS = Taxe sur les produits et servicesHST = Harmonized Sales TaxPST = Provincial Sales Tax
?
?
Country
Cape Verde
Standard rate (current)
15%
Local name
?
?
?
Country
Central African Republic
Standard rate (current)
19%
Local name
?
?
?
Country
Chad
Standard rate (current)
18%
Local name
?
IVA = Impuesto al Valor Agregado
IVA = Impuesto al Valor Agregado
Country
Chile
Standard rate (current)
19%
Local name
IVA = Impuesto al Valor Agregado
增值税 (zēng zhí shuì)
增值税 (zēng zhí shuì)
Country
China
Standard rate (current)
13%
Reduced rate (current)
9% for foods, printed matter, and households fuels; 6% for service; or 3% for non-VAT
Local name
增值税 (zēng zhí shuì)
IVA = Impuesto al Valor Agregado
IVA = Impuesto al Valor Agregado
Country
Colombia
Standard rate (current)
19%
Local name
IVA = Impuesto al Valor Agregado
IVA = Impuesto al Valor Agregado
IVA = Impuesto al Valor Agregado
Country
Costa Rica
Standard rate (current)
13%
Local name
IVA = Impuesto al Valor Agregado
?
?
Country
Democratic Republic of the Congo
Standard rate (current)
16%
Local name
?
?
?
Country
Dominica
Standard rate (current)
15%
Local name
?
ITBIS = Impuesto sobre Transferencia de Bienes Industrializados y Servicios
ITBIS = Impuesto sobre Transferencia de Bienes Industrializados y Servicios
Country
Dominican Republic
Standard rate (current)
18%
Reduced rate (current)
12% or 0%
Local name
ITBIS = Impuesto sobre Transferencia de Bienes Industrializados y Servicios
IVA = Impuesto al Valor Agregado
IVA = Impuesto al Valor Agregado
Country
Ecuador
Standard rate (current)
12%
Reduced rate (current)
0%
Local name
IVA = Impuesto al Valor Agregado
VAT = Value Added Tax (الضريبة على القيمة المضافة)
VAT = Value Added Tax (الضريبة على القيمة المضافة)
Country
Egypt
Standard rate (current)
14% (15% on communication services)
Local name
VAT = Value Added Tax (الضريبة على القيمة المضافة)
IVA = Impuesto al Valor Agregado o "Impuesto a la Transferencia de Bienes Muebles y a la Prestación de Servicios"
IVA = Impuesto al Valor Agregado o "Impuesto a la Transferencia de Bienes Muebles y a la Prestación de Servicios"
Country
El Salvador
Standard rate (current)
13%
Local name
IVA = Impuesto al Valor Agregado o "Impuesto a la Transferencia de Bienes Muebles y a la Prestación de Servicios"
VAT = Value Added Tax plus National Health Insurance Levy (NHIL; 2.5%)
VAT = Value Added Tax plus National Health Insurance Levy (NHIL; 2.5%)
Country
Ghana
Standard rate (current)
15%
Local name
VAT = Value Added Tax plus National Health Insurance Levy (NHIL; 2.5%)
?
?
Country
Grenada
Standard rate (current)
15%
Local name
?
IVA = Impuesto al Valor Agregado
IVA = Impuesto al Valor Agregado
Country
Guatemala
Standard rate (current)
12%
Local name
IVA = Impuesto al Valor Agregado
?
?
Country
Guinea
Standard rate (current)
18%
Local name
?
?
?
Country
Guinea-Bissau
Standard rate (current)
15%
Local name
?
VAT = Value Added Tax
VAT = Value Added Tax
Country
Guyana
Standard rate (current)
16%
Reduced rate (current)
0%
Local name
VAT = Value Added Tax
?
?
Country
Haiti
Standard rate (current)
10%
Local name
?
ISV = Impuesto Sobre Ventas
ISV = Impuesto Sobre Ventas
Country
Honduras
Standard rate (current)
15% (4% additional on tourism tax)
Local name
ISV = Impuesto Sobre Ventas
VSK, VASK = Virðisaukaskattur
VSK, VASK = Virðisaukaskattur
Country
Iceland
Standard rate (current)
24%
Reduced rate (current)
11%
Local name
VSK, VASK = Virðisaukaskattur
VAT = Value Added Tax
VAT = Value Added Tax
Country
India
Standard rate (current)
18%
Reduced rate (current)
5%
Local name
VAT = Value Added Tax
PPN = Pajak Pertambahan Nilai
PPN = Pajak Pertambahan Nilai
Country
Indonesia
Standard rate (current)
12%
Reduced rate (current)
12%, 0% for primary groceries, medical services, financial services, education and also insurance
Local name
PPN = Pajak Pertambahan Nilai
VAT = Value Added Tax (مالیات بر ارزش افزوده)
VAT = Value Added Tax (مالیات بر ارزش افزوده)
Country
Iran
Standard rate (current)
9%
Local name
VAT = Value Added Tax (مالیات بر ارزش افزوده)
?
?
Country
Isle of Man
Standard rate (current)
20%
Local name
?
Ma'am = מס ערך מוסף, מע"מ
Ma'am = מס ערך מוסף, מע"מ
Country
Israel
Standard rate (current)
18% (0% in Eilat)
Reduced rate (current)
0% (fruits and vegetables, tourism services for foreign citizens, intellectual property, diamonds, flights and apartments renting)
Local name
Ma'am = מס ערך מוסף, מע"מ
?
?
Country
Ivory Coast
Standard rate (current)
18%
Local name
?
GCT = General Consumption Tax
GCT = General Consumption Tax
Country
Jamaica
Standard rate (current)
15%
Local name
GCT = General Consumption Tax
shōhizei (消費税) ("consumption tax")
shōhizei (消費税) ("consumption tax")
Country
Japan
Standard rate (current)
10%
Reduced rate (current)
8% (groceries, Subscription newspaper)
Local name
shōhizei (消費税) ("consumption tax")
GST = Goods and Services Tax
GST = Goods and Services Tax
Country
Jersey
Standard rate (current)
5%
Reduced rate (current)
0%
Local name
GST = Goods and Services Tax
GST = Goods and Sales Tax
GST = Goods and Sales Tax
Country
Jordan
Standard rate (current)
16%
Local name
GST = Goods and Sales Tax
ҚCҚ = Қосылған құнға салынатын салық (Kazakh)VAT = Value Added Tax
ҚCҚ = Қосылған құнға салынатын салық (Kazakh)VAT = Value Added Tax
Country
Kazakhstan
Standard rate (current)
12%
Local name
ҚCҚ = Қосылған құнға салынатын салық (Kazakh)VAT = Value Added Tax
?
?
Country
Kenya
Standard rate (current)
16%
Local name
?
?
?
Country
Kyrgyzstan
Standard rate (current)
20%
Local name
?
?
?
Country
Laos
Standard rate (current)
10%
Local name
?
TVA = Taxe sur la Valeur Ajoutée (الضريبة على القيمة المضافة)
TVA = Taxe sur la Valeur Ajoutée (الضريبة على القيمة المضافة)
Country
Lebanon
Standard rate (current)
11%
Local name
TVA = Taxe sur la Valeur Ajoutée (الضريبة على القيمة المضافة)
?
?
Country
Lesotho
Standard rate (current)
14%
Local name
?
MWST = Mehrwertsteuer
MWST = Mehrwertsteuer
Country
Liechtenstein
Standard rate (current)
8.1%
Reduced rate (current)
3.8% (lodging services) or 2.6%
Local name
MWST = Mehrwertsteuer
TVA =Taxe sur la Valeur Ajoutée, HASS = Hetra Amin'ny Sandan'ny Sandany
TVA =Taxe sur la Valeur Ajoutée, HASS = Hetra Amin'ny Sandan'ny Sandany
Country
Madagascar
Standard rate (current)
20%
Local name
TVA =Taxe sur la Valeur Ajoutée, HASS = Hetra Amin'ny Sandan'ny Sandany
?
?
Country
Malawi
Standard rate (current)
16.5%
Local name
?
SST = Sales and Services TaxCJP = Cukai Jualan dan Perkhidmatan
GST = Goods and Services Tax (Malaysia)
SST = Sales and Services TaxCJP = Cukai Jualan dan Perkhidmatan
GST = Goods and Services Tax (Malaysia)
Country
Malaysia
Standard rate (current)
8%
Reduced rate (current)
0% for fresh foods, education, healthcare, land public transportation and medicines. Sales and Services Tax (SST) was reintroduced by the Malaysian Government on 1 September 2018 to replace the Goods and Services Tax (GST) which had only been introduced just over three years before that, on 1 April 2015.
Local name
SST = Sales and Services TaxCJP = Cukai Jualan dan Perkhidmatan
GST = Goods and Services Tax (Malaysia)
GST = Goods and services tax (Government Tax)
GST = Goods and services tax (Government Tax)
Country
Maldives
Standard rate (current)
6%
Reduced rate (current)
0%
Local name
GST = Goods and services tax (Government Tax)
?
?
Country
Mali
Standard rate (current)
18%
Local name
?
TVA = Taxe sur la Valeur Ajoutée (الضريبة على القيمة المضافة)
TVA = Taxe sur la Valeur Ajoutée (الضريبة على القيمة المضافة)
Country
Mauritania
Standard rate (current)
14%
Local name
TVA = Taxe sur la Valeur Ajoutée (الضريبة على القيمة المضافة)
VAT = Value Added Tax, TVA = Taxe sur la Valeur Ajoutée, TVA = Tax lor Valer Azoute
VAT = Value Added Tax, TVA = Taxe sur la Valeur Ajoutée, TVA = Tax lor Valer Azoute
Country
Mauritius
Standard rate (current)
15%
Local name
VAT = Value Added Tax, TVA = Taxe sur la Valeur Ajoutée, TVA = Tax lor Valer Azoute
IVA = Impuesto al Valor Agregado
IVA = Impuesto al Valor Agregado
Country
Mexico
Standard rate (current)
16%
Reduced rate (current)
0% on books, food and medicines.
Local name
IVA = Impuesto al Valor Agregado
TVA = Taxa pe Valoarea Adăugată
TVA = Taxa pe Valoarea Adăugată
Country
Moldova
Standard rate (current)
20%
Reduced rate (current)
8%, 5% or 0%
Local name
TVA = Taxa pe Valoarea Adăugată
TVA = Taxe sur la valeur ajoutée
TVA = Taxe sur la valeur ajoutée
Country
Monaco
Standard rate (current)
19.6%
Reduced rate (current)
5.6%
Local name
TVA = Taxe sur la valeur ajoutée
VAT = Нэмэгдсэн өртгийн албан татвар
VAT = Нэмэгдсэн өртгийн албан татвар
Country
Mongolia
Standard rate (current)
10%
Reduced rate (current)
0%
Local name
VAT = Нэмэгдсэн өртгийн албан татвар
PDV = Porez na dodatu vrijednost
PDV = Porez na dodatu vrijednost
Country
Montenegro
Standard rate (current)
21%
Reduced rate (current)
7%
Local name
PDV = Porez na dodatu vrijednost
TVA = Taxe sur Valeur Ajoutée (الضريبة على القيمة المضافة)
TVA = Taxe sur Valeur Ajoutée (الضريبة على القيمة المضافة)
Country
Morocco
Standard rate (current)
20%
Local name
TVA = Taxe sur Valeur Ajoutée (الضريبة على القيمة المضافة)
IVA = Imposto Sobre o Valor Acrescentado
IVA = Imposto Sobre o Valor Acrescentado
Country
Mozambique
Standard rate (current)
16%
Local name
IVA = Imposto Sobre o Valor Acrescentado
VAT = Value Added Tax
VAT = Value Added Tax
Country
Namibia
Standard rate (current)
15%
Reduced rate (current)
0%
Local name
VAT = Value Added Tax
VAT = Value Added Taxes
VAT = Value Added Taxes
Country
Nepal
Standard rate (current)
13%
Reduced rate (current)
0%
Local name
VAT = Value Added Taxes
GST = Goods and Services Tax
GST = Goods and Services Tax
Country
New Zealand
Standard rate (current)
15%
Reduced rate (current)
0% (donated goods and services sold by non-profits, financial services, rental payments for residential properties, supply of fine metals, and penalty interest).
Local name
GST = Goods and Services Tax
?
?
Country
Nicaragua
Standard rate (current)
15%
Local name
?
?
?
Country
Niger
Standard rate (current)
19%
Local name
?
?
?
Country
Nigeria
Standard rate (current)
7.5%
Local name
?
?
?
Country
Niue
Standard rate (current)
5%
Local name
?
ДДВ = Данок на додадена вредност, DDV = Danok na dodadena vrednost
ДДВ = Данок на додадена вредност, DDV = Danok na dodadena vrednost
Country
North Macedonia
Standard rate (current)
18%
Reduced rate (current)
5% or 0%
Local name
ДДВ = Данок на додадена вредност, DDV = Danok na dodadena vrednost
MVA = Merverdiavgift (bokmål) or meirverdiavgift (nynorsk) (informally moms)
MVA = Merverdiavgift (bokmål) or meirverdiavgift (nynorsk) (informally moms)
Country
Norway
Standard rate (current)
25%
Reduced rate (current)
15% (food), 12% (public transport, hotel, cinema) and 0% for electric cars (until 2018)
Local name
MVA = Merverdiavgift (bokmål) or meirverdiavgift (nynorsk) (informally moms)
GST = General Sales Tax
GST = General Sales Tax
Country
Pakistan
Standard rate (current)
18%
Reduced rate (current)
1% or 0%
Local name
GST = General Sales Tax
PGST = Palau Goods & Services Tax
PGST = Palau Goods & Services Tax
Country
Palau
Standard rate (current)
10%
Local name
PGST = Palau Goods & Services Tax
VAT = Value Added Tax
VAT = Value Added Tax
Country
Palestine
Standard rate (current)
16%
Local name
VAT = Value Added Tax
ITBMS = Impuesto de Transferencia de Bienes Muebles y Servicios
ITBMS = Impuesto de Transferencia de Bienes Muebles y Servicios
Country
Panama
Standard rate (current)
7%
Reduced rate (current)
0%
Local name
ITBMS = Impuesto de Transferencia de Bienes Muebles y Servicios
?
?
Country
Papua New Guinea
Standard rate (current)
10%
Local name
?
IVA= Impuesto al Valor Agregado
IVA= Impuesto al Valor Agregado
Country
Paraguay
Standard rate (current)
10%
Reduced rate (current)
5%
Local name
IVA= Impuesto al Valor Agregado
IGV – 16% = Impuesto General a la Ventas IPM – 2% Impuesto de Promocion Municipal
IGV – 16% = Impuesto General a la Ventas IPM – 2% Impuesto de Promocion Municipal
Country
Peru
Standard rate (current)
18%
Local name
IGV – 16% = Impuesto General a la Ventas IPM – 2% Impuesto de Promocion Municipal
RVAT = Reformed Value Added Tax, locally known as Karagdagang Buwis / Dungag nga Buhis
RVAT = Reformed Value Added Tax, locally known as Karagdagang Buwis / Dungag nga Buhis
Country
Philippines
Standard rate (current)
12%
Reduced rate (current)
6% on petroleum products, and electricity and water services 0% for senior citizens (all who are aged 60 and above) on medicines, professional fees for physicians, medical and dental services, transportation fares, admission fees charged by theaters and amusement centers, and funeral and burial services after the death of the senior citizen
Local name
RVAT = Reformed Value Added Tax, locally known as Karagdagang Buwis / Dungag nga Buhis
?
?
Country
Republic of Congo
Standard rate (current)
16%
Local name
?
НДС = Налог на добавленную стоимость, NDS = Nalog na dobavlennuyu stoimost'
НДС = Налог на добавленную стоимость, NDS = Nalog na dobavlennuyu stoimost'
Country
Russia
Standard rate (current)
20%
Reduced rate (current)
10% (essential food, goods for children and medical products) or 0%
Local name
НДС = Налог на добавленную стоимость, NDS = Nalog na dobavlennuyu stoimost'
VAT = Value Added Tax, TVA = Taxe sur la Valeur Ajoutée, UN = Umusoro ku Nyongeramusaruro
VAT = Value Added Tax, TVA = Taxe sur la Valeur Ajoutée, UN = Umusoro ku Nyongeramusaruro
Country
Rwanda
Standard rate (current)
18%
Reduced rate (current)
0%
Local name
VAT = Value Added Tax, TVA = Taxe sur la Valeur Ajoutée, UN = Umusoro ku Nyongeramusaruro
VAT = Value Added Tax
VAT = Value Added Tax
Country
Saint Kitts and Nevis
Standard rate (current)
17%
Local name
VAT = Value Added Tax
?
?
Country
Saint Vincent and the Grenadines
Standard rate (current)
15%
Local name
?
VAT = Value Added Tax, LFT = Lafoga Fa'aopoopo Tau
VAT = Value Added Tax, LFT = Lafoga Fa'aopoopo Tau
Country
Samoa
Standard rate (current)
15%
Local name
VAT = Value Added Tax, LFT = Lafoga Fa'aopoopo Tau
ضريبة القيمة المضافة (VAT)
ضريبة القيمة المضافة (VAT)
Country
Saudi Arabia
Standard rate (current)
15%
Local name
ضريبة القيمة المضافة (VAT)
?
?
Country
Senegal
Standard rate (current)
18%
Local name
?
ПДВ = Порез на додату вредност, PDV = Porez na dodatu vrednost
ПДВ = Порез на додату вредност, PDV = Porez na dodatu vrednost
Country
Serbia
Standard rate (current)
20%
Reduced rate (current)
10% or 0%
Local name
ПДВ = Порез на додату вредност, PDV = Porez na dodatu vrednost
?
?
Country
Seychelles
Standard rate (current)
15%
Local name
?
?
?
Country
Sierra Leone
Standard rate (current)
15%
Local name
?
GST = Goods and Services Tax
GST = Goods and Services Tax
Country
Singapore
Standard rate (current)
9%
Reduced rate (current)
0% for public healthcare services, such as at public hospitals and polyclinics, with GST absorbed by the government.
0% on basic foodstuffs such as bread, additionally on goods donated not for gain; goods or services used for educational purposes, such as school computers; membership contributions to an employee organization (such as labour union dues); and rent paid on a house by a renter to a landlord.
VAT = Valued Added Tax has been in effect in Sri Lanka since 2001. On the 2001 budget, the rates have been revised to 12% and 0% from the previous 20%, 12% and 0%
VAT = Valued Added Tax has been in effect in Sri Lanka since 2001. On the 2001 budget, the rates have been revised to 12% and 0% from the previous 20%, 12% and 0%
Country
Sri Lanka
Standard rate (current)
18%
Reduced rate (current)
0%
Local name
VAT = Valued Added Tax has been in effect in Sri Lanka since 2001. On the 2001 budget, the rates have been revised to 12% and 0% from the previous 20%, 12% and 0%
?
?
Country
Sudan
Standard rate (current)
17%
Local name
?
MWST = Mehrwertsteuer, TVA = Taxe sur la valeur ajoutée, IVA = Imposta sul valore aggiunto, TPV = Taglia sin la Plivalur
MWST = Mehrwertsteuer, TVA = Taxe sur la valeur ajoutée, IVA = Imposta sul valore aggiunto, TPV = Taglia sin la Plivalur
Country
Switzerland
Standard rate (current)
8.1%
Reduced rate (current)
3.8% (hotel sector) and 2.6% (essential foodstuff, books, newspapers, medical supplies)
Local name
MWST = Mehrwertsteuer, TVA = Taxe sur la valeur ajoutée, IVA = Imposta sul valore aggiunto, TPV = Taglia sin la Plivalur
VAT = Value Added Tax, TTM = Tukuhau Tānaki Mahuʻinga
VAT = Value Added Tax, TTM = Tukuhau Tānaki Mahuʻinga
Country
Tonga
Standard rate (current)
15%
Local name
VAT = Value Added Tax, TTM = Tukuhau Tānaki Mahuʻinga
?
?
Country
Trinidad and Tobago
Standard rate (current)
12.5%
Reduced rate (current)
0%
Local name
?
TVA = Taxe sur la Valeur Ajoutée آداء على القيمة المضافة
TVA = Taxe sur la Valeur Ajoutée آداء على القيمة المضافة
Country
Tunisia
Standard rate (current)
19%
Local name
TVA = Taxe sur la Valeur Ajoutée آداء على القيمة المضافة
KDV = Katma değer vergisi
KDV = Katma değer vergisi
Country
Turkey
Standard rate (current)
20%
Reduced rate (current)
10% or 1%
Local name
KDV = Katma değer vergisi
GGS = Goşulan Gymmatlyk Salgydy
GGS = Goşulan Gymmatlyk Salgydy
Country
Turkmenistan
Standard rate (current)
15%
Local name
GGS = Goşulan Gymmatlyk Salgydy
?
?
Country
Uganda
Standard rate (current)
18%
Local name
?
ПДВ = Податок на додану вартість, PDV = Podatok na dodanu vartist'
ПДВ = Податок на додану вартість, PDV = Podatok na dodanu vartist'
Country
Ukraine
Standard rate (current)
20%
Reduced rate (current)
7% or 0%
Local name
ПДВ = Податок на додану вартість, PDV = Podatok na dodanu vartist'
ضريبة القيمة المضافة
ضريبة القيمة المضافة
Country
United Arab Emirates
Standard rate (current)
5%
Local name
ضريبة القيمة المضافة
VAT = Value Added Tax
TAW = Treth Ar Werth (Welsh)
VAT = Value Added Tax
TAW = Treth Ar Werth (Welsh)
Country
United Kingdom
Standard rate (current)
20%0% in Guernsey and Gibraltar (not part of EU VAT area)
Reduced rate (current)
5% residential energy/insulation/renovations, feminine hygiene products, child safety seats and mobility aids and 0% for life necessities – basic food, water, prescription medications, medical equipment and medical supply, public transport, children's clothing, books and periodicals. Also 0% for new building construction (but standard rate for building demolition, modifications, renovation etc.)
Local name
VAT = Value Added Tax
TAW = Treth Ar Werth (Welsh)
IVA = Impuesto al Valor Agregado
IVA = Impuesto al Valor Agregado
Country
Uruguay
Standard rate (current)
22%
Reduced rate (current)
18% or 0%
Local name
IVA = Impuesto al Valor Agregado
QQS = Qoʻshilgan Qiymat Soligʻi
QQS = Qoʻshilgan Qiymat Soligʻi
Country
Uzbekistan
Standard rate (current)
12%
Local name
QQS = Qoʻshilgan Qiymat Soligʻi
?
?
Country
Vanuatu
Standard rate (current)
15%
Local name
?
IVA = Impuesto al Valor Agregado
IVA = Impuesto al Valor Agregado
Country
Venezuela
Standard rate (current)
16%
Reduced rate (current)
11%
Local name
IVA = Impuesto al Valor Agregado
GTGT = Giá Trị Gia Tăng
GTGT = Giá Trị Gia Tăng
Country
Vietnam
Standard rate (current)
10%
Reduced rate (current)
5% or 0%
Local name
GTGT = Giá Trị Gia Tăng
VAT = Value Added Tax
VAT = Value Added Tax
Country
Zambia
Standard rate (current)
16%
Local name
VAT = Value Added Tax
VAT = Value Added Tax
VAT = Value Added Tax
Country
Zimbabwe
Standard rate (current)
15%
Local name
VAT = Value Added Tax
آداء على القيمة المضافة
آداء على القيمة المضافة
Country
Yemen
Standard rate (current)
5%
Local name
آداء على القيمة المضافة
Ranked list
Country
Standard rate (current)
Reduced rate (current)
Local name
Albania
20%
6% (accommodation services) or 0% (postal, medical, dental and welfare services)
TVSH = Tatimi mbi Vlerën e Shtuar
Algeria
19%
The reduced VAT rate in Algeria is currently 9%. It applies to basic goods and services such as food, medicine, and transportation.
TVA = Taxe sur la Valeur Ajoutée (الضريبة على القيمة المضافة)
Andorra
4.5%
1%
IGI = Impost General Indirecte
Angola
14%
5% which applies to the import and supply of certain goods (products of the Basic Basket listed in Annex I of the VAT Code and agricultural inputs)
0% fresh food, medical services, medicines and medical devices, education services, childcare, water and sewerage, government taxes & permits and many government charges, precious metals, second-hand goods and many other types of goods. Rebates for exported goods and GST taxed business inputs are also available
GST = Goods and Services Tax
Azerbaijan
18%
10.5% or 0%
ƏDV = Əlavə dəyər vergisi
Bahamas
12%
12% or 0% (including but not limited to exports of goods or services, services to a foreign going vessel providing international commercial services, consumable goods for commercially scheduled foreign going vessels/aircraft, copyright, etc.)
VAT = Value Added Tax
Bahrain
10%
0% (pharmacies and medical services, road transport, education service, Oil and gas derivatives, Vegetables and fruits, National exports)
(VAT) ضريبة القيمة المضافة
Bangladesh
15%
4% for supplier, 4.5% for ITES, 5% for electricity, 5.5% for construction firm, etc.
Musok = Mullo songzojon kor মূসক = "মূল্য সংযোজন কর"
Barbados
17.5%
VAT = Value Added Tax
Belarus
20%
10% or 0.5%
ПДВ = Падатак на дададзеную вартасьць
Belize
12.5%
?
Benin
18%
?
Bolivia
13%
IVA = Impuesto al Valor Agregado
Bosnia and Herzegovina
17%
PDV = Porez na dodanu vrijednost
Botswana
14%
?
Brazil
20% (IPI) + 19% (ICMS) average + 3% (ISS) average
0%
IPI – 20% = Imposto sobre produtos industrializados (Tax over industrialized products) – Federal Tax ICMS – 17 to 25% = Imposto sobre circulação e serviços (tax over commercialization and services) – State Tax ISS – 2 to 5% = Imposto sobre serviço de qualquer natureza (tax over any service) – City tax
Burkina Faso
18%
?
Burundi
18%
?
Cambodia
10%
?
Cameroon
19.25%
?
Canada
5% GST + 0–9.975% PST or 13-15% HST depending on province.
0% on GST or HST for Prescription drugs, medical devices, basic groceries, agricultural/fishing products, exported or foreign goods, services and travel. Other exemptions exist for PSTs and vary by province.
GST = Goods and Services TaxTPS = Taxe sur les produits et servicesHST = Harmonized Sales TaxPST = Provincial Sales Tax
Cape Verde
15%
?
Central African Republic
19%
?
Chad
18%
?
Chile
19%
IVA = Impuesto al Valor Agregado
China
13%
9% for foods, printed matter, and households fuels; 6% for service; or 3% for non-VAT
增值税 (zēng zhí shuì)
Colombia
19%
IVA = Impuesto al Valor Agregado
Costa Rica
13%
IVA = Impuesto al Valor Agregado
Democratic Republic of the Congo
16%
?
Dominica
15%
?
Dominican Republic
18%
12% or 0%
ITBIS = Impuesto sobre Transferencia de Bienes Industrializados y Servicios
Ecuador
12%
0%
IVA = Impuesto al Valor Agregado
Egypt
14% (15% on communication services)
VAT = Value Added Tax (الضريبة على القيمة المضافة)
El Salvador
13%
IVA = Impuesto al Valor Agregado o "Impuesto a la Transferencia de Bienes Muebles y a la Prestación de Servicios"
VAT = Value Added Tax plus National Health Insurance Levy (NHIL; 2.5%)
Grenada
15%
?
Guatemala
12%
IVA = Impuesto al Valor Agregado
· Examples by continent › VAT-free countries and territories
Multi-metric bars
World heat map
Akrotiri and Dhekelia
Akrotiri and Dhekelia
Country
Akrotiri and Dhekelia
Notes
British Overseas Territory
Anguilla
Anguilla
Country
Anguilla
Notes
British Overseas Territory
Bermuda
Bermuda
Country
Bermuda
Notes
British Overseas Territory
British Antarctic Territory
British Antarctic Territory
Country
British Antarctic Territory
Notes
British Overseas Territory
British Indian Ocean Territory
British Indian Ocean Territory
Country
British Indian Ocean Territory
Notes
British Overseas Territory
British Virgin Islands
British Virgin Islands
Country
British Virgin Islands
Notes
British Overseas Territory
Brunei
Brunei
Country
Brunei
Notes
—
Cayman Islands
Cayman Islands
Country
Cayman Islands
Notes
British Overseas Territory
Cuba
Cuba
Country
Cuba
Notes
—
Falkland Islands
Falkland Islands
Country
Falkland Islands
Notes
British Overseas Territory
Gibraltar
Gibraltar
Country
Gibraltar
Notes
British Overseas Territory
Guernsey
Guernsey
Country
Guernsey
Notes
British Crown Dependency
Greenland
Greenland
Country
Greenland
Notes
Constituent country of the Kingdom of Denmark
Hong Kong
Hong Kong
Country
Hong Kong
Notes
Special administrative region of China
Iraq
Iraq
Country
Iraq
Notes
—
Kiribati
Kiribati
Country
Kiribati
Notes
—
Libya
Libya
Country
Libya
Notes
—
Macau
Macau
Country
Macau
Notes
Special administrative region of China
Maldives
Maldives
Country
Maldives
Notes
—
Marshall Islands
Marshall Islands
Country
Marshall Islands
Notes
—
Micronesia
Micronesia
Country
Micronesia
Notes
—
Montserrat
Montserrat
Country
Montserrat
Notes
British Overseas Territory
Myanmar
Myanmar
Country
Myanmar
Notes
—
Nauru
Nauru
Country
Nauru
Notes
—
North Korea
North Korea
Country
North Korea
Notes
—
Pitcairn Islands
Pitcairn Islands
Country
Pitcairn Islands
Notes
British Overseas Territory
Saint Helena, Ascension and Tristan da Cunha
Saint Helena, Ascension and Tristan da Cunha
Country
Saint Helena, Ascension and Tristan da Cunha
Notes
British Overseas Territory
San Marino
San Marino
Country
San Marino
Notes
—
Sao Tome and Principe
Sao Tome and Principe
Country
Sao Tome and Principe
Notes
—
Solomon Islands
Solomon Islands
Country
Solomon Islands
Notes
—
Somalia
Somalia
Country
Somalia
Notes
—
South Georgia and the South Sandwich Islands
South Georgia and the South Sandwich Islands
Country
South Georgia and the South Sandwich Islands
Notes
British Overseas Territory
Svalbard
Svalbard
Country
Svalbard
Notes
—
Syria
Syria
Country
Syria
Notes
—
Timor Leste
Timor Leste
Country
Timor Leste
Notes
—
Turks and Caicos Islands
Turks and Caicos Islands
Country
Turks and Caicos Islands
Notes
British Overseas Territory
Tuvalu
Tuvalu
Country
Tuvalu
Notes
—
United States
United States
Country
United States
Notes
Sales taxes are collected by most states and some cities, counties, and Native American reservations. The federal government collects excise tax on some goods, but does not collect a nationwide sales tax.
Vatican City
Vatican City
Country
Vatican City
Notes
—
Ranked list
Country
Notes
Akrotiri and Dhekelia
British Overseas Territory
Anguilla
British Overseas Territory
Bermuda
British Overseas Territory
British Antarctic Territory
British Overseas Territory
British Indian Ocean Territory
British Overseas Territory
British Virgin Islands
British Overseas Territory
Brunei
—
Cayman Islands
British Overseas Territory
Cuba
—
Falkland Islands
British Overseas Territory
Gibraltar
British Overseas Territory
Guernsey
British Crown Dependency
Greenland
Constituent country of the Kingdom of Denmark
Hong Kong
Special administrative region of China
Iraq
—
Kiribati
—
Libya
—
Macau
Special administrative region of China
Maldives
—
Marshall Islands
—
Micronesia
—
Montserrat
British Overseas Territory
Myanmar
—
Nauru
—
North Korea
—
Pitcairn Islands
British Overseas Territory
Saint Helena, Ascension and Tristan da Cunha
British Overseas Territory
San Marino
—
Sao Tome and Principe
—
Solomon Islands
—
Somalia
—
South Georgia and the South Sandwich Islands
British Overseas Territory
Svalbard
—
Syria
—
Timor Leste
—
Turks and Caicos Islands
British Overseas Territory
Tuvalu
—
United States
Sales taxes are collected by most states and some cities, counties, and Native American reservations. The federal government collects excise tax on some goods, but does not collect a nationwide sales tax.
Vatican City
—
References
The simplified examples assume incorrectly that taxes are non-distortionary: the same number of widgets were made and so
No reduced rate, but rebates generally available for certain services
HST is a combined federal/provincial sales tax collected in some provinces. GST is a 5% federal sales tax collected sepa
These taxes do not apply in Hong Kong and Macau, which are financially independent and VAT-free as special administrativ
The reduced rate was 14% until 1 March 2007, when it was lowered to 7%, and later changed to 11%. The reduced rate appli
VAT is not implemented in 2 of India's 28 states.
Except Eilat, where VAT is not raised.
The VAT in Israel is in a state of flux. It was reduced from 18% to 17% in March 2004, to 16.5% in September 2005, then
The introduction of a goods and sales tax of 3% on 6 May 2008 was to replace revenue from Company Income Tax following a
In the 2014 Budget, the government announced that GST would be introduced in April 2015. Piped water, power supply (the
The President of the Philippines has the power to raise the tax to 12% after 1 January 2006. The tax was raised to 12% o
Consumption Tax Trends 2018: VAT/GST and excise rates, trends and policy issues
