Source: F. Annacondia, International - Overview of General Turnover Taxes and Tax Rates, International VAT Monitor, Journals IBFD, cited with permission of IBFD, see http://online.ibfd.org/kbase/, All rights reserved.
The acronym “VAT” refers to any national tax that embodies the basic features of a value added tax as described in Chapter 1, by whatever name or acronym it is known e.g. “Goods and Services Tax” (“GST”)
1. The standard rate is the rate that generally applies, unless the legislation explicitly provides that specific goods and services are subject to different (reduced or increased) rates.
2. Reduced rates include zero-rates applicable to domestic supplies (i.e. an exemption with right to deduct input tax). This does not include zero-rated exports or other supplies subject to similar treatment such as international transport or supplies to embassies, international organisations and diplomatic missions. Temporary VAT rate reductions notably implemented in the context of the COVID-19 and energy crises are not reflected in this table given their temporary nature.
3. Austria: The standard VAT rate is 19% and the reduced VAT rates are 10% and 13% in Jungholtz and Mittelberg.
4. Barbados: There is an extended reduction in the VAT rate on electricity supplied to households (from 17.5% to 7.5%) on the first 250 kWh supplied from 1 April 2024 to 30 September 2024 inclusive).
5. Belarus: The increased rate of 25% applies to electronic communication services.
6. Brazil: the standard (internal) rate varies from 17% to 22% depending on the federal state (some states may also apply an additional rate (e.g. 1%, 2%) to the standard (internal) rate for certain products, for the financing of certain state funds). The internal rate of a state applies to supplies within that state.
7. Canada: The following provinces have harmonised their provincial sales taxes with the federal Goods and Services Tax and therefore levy a GST/HST at the following rates: New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island: 15%; and Ontario: 13%. Québec applies GST at a rate of 5% and Québec Sales Tax at a rate of 9.975% (applied on the same tax base as the GST). With the exception of Canada’s territories (Yukon, Northwest Territories and Nunavut) and the province of Alberta, other Canadian provinces apply a provincial sales tax to certain goods and services in addition to the federal GST.
8. China (People’s Rep.): Different rates for specific goods and services may also be determined separately by the tax authority in official notices or announcements. Small-scale taxpayers are exempt from VAT on the sale of certain goods or the provision of certain services up to CNY 100,000 on a monthly basis and the excess is subject to VAT at a flat rate of 3% (known as the collection rate), and they are not entitled to deduct input VAT (the application of the so-called “simplified calculation method”). The rate of 3% also applies to specified asset management services. In addition, a reduced rate of 5% is applied to the collection rate on total revenue of individuals that rent residential properties.
9. Cyprus: Footnote by Turkey: the information in this document with reference to « Cyprus » relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Turkey recognizes the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of United Nations, Turkey shall preserve its position concerning the “Cyprus issue”.
Footnote by all the European Union Member States of the OECD and the European Union: the Republic of Cyprus is recognised by all members of the United Nations with the exception of Turkey. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus.
10. Ecuador: The standard VAT rate has been temporarily increased to 15% from 1 April 2024 to 31 December 2024.
11. Fiji: from 1 August 2023 onwards, the VAT standard rate is 15%. Before this date, the standard rate was 9% and an increased 15% rate applied to selected goods and services.
12. France: Specific rates also apply in some regions/territories: standard rate of 20% and reduced rates of 0.9%/2.1%/10.0%/13.0% (Corsica); standard rate of 16% and reduced rates of 10.5%/1.75%//2.1% (Martinique, Guadeloupe, Réunion); standard rate of 16% and reduced rates of 5% (French Polynesia).
13. Greece: Specific regional standard rate of 17% and reduced rates of rates of 4.0% and 9.0% apply in the islands of Chios, Kos, Leros, Lesbos, and Samos.
14. Iran: In addition to VAT (at the rate of 6%) an additional levy of 3% is collected and treated in the same way as VAT.
15. Israel: The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.
16. Kosovo This designation is without prejudice to positions on status, and is in line with United Nations Security Council Resolution 1244/99 and the Advisory Opinion of the International Court of Justice on Kosovo’s declaration of independence.
17. Mexico: a reduced rate of 8% applies for the Northern and Southern border regions. It applies to the supply of goods, the provision of services and the grant of temporary use or enjoyment of goods within the northern or southern border region, excluding the sale of real estate and the sale or grant of the use or enjoyment of intangible assets. It also applies to transportation of goods or persons made by land, sea or air when such services begin and end in the same region without making stops outside of it. It is valid until 31 December 2024.
18. Peru: in addition to the standard IGV rate of 16%, a 2% sales tax (IPM) is levied at municipal level. Moreover, a reduced IGV rate of 8% applies to micro and small enterprises that carry out restaurant, hotel or tourist accommodation activities until 31 December 2024.
19. Portugal: In the Islands of Azores, the standard VAT rate is 16% and the reduced rates are 4% and 9%. In the Islands of Madeira the standard rate is 22% and reduced rates are 5% and 12%.
20. Spain: Rates of 0.0%, 3.0%; 7.0%, 9.50%; 13.50%, 20% apply in the Canary Islands.
21. St. Kitts and Nevis: The VAT rate on eligible building materials for first-time homeowners and home renovations and repairs will be reduced to 13% from 19 September 2023 to 31 December 2024.
22. Tajikistan: For cashless transactions, the VAT rate has been reduced from 15% to 14% from 1 January 2024 and will be reduced to 13% from 2027. However, for cash transactions, the VAT rate has been increased from 18% to 19% in 2024, and to 20% in 2027. The VAT rate reduction aims to incentivize the transition to cashless payments.
23. Thailand: The standard VAT rate was 10% before 16 August 1997. However, the VAT rate was reduced to 7% from 1 April 1999 and the application period of the reduced rate has been extended on a regular basis and will continue to apply until 30 September 2024. The rate of 10% will be applied from 1 October 2024 onwards, unless the reduces rate of 7% is extended.
24. Vietnam: The government has extended the 2% VAT reduction for goods and services subject to the standard rate up to 31 December 2024, bringing the VAT rate for these products to 8%.
25. Aruba. The implementation of VAT, initially planned for 1 January 2023 was delayed.
26. Bhutan: The implementation of VAT, initially planned for 1 July 2022 was delayed
27 Kuwait. The implementation of VAT, initially planned for 1 January 2023 was delayed.
27. Liberia. The government announced the implementation of VAT in 2023.
28. Qatar. The implementation of VAT was delayed.
29. Malaysia. GST was abolished and a single-stage sales tax system was reintroduced on 1 September 2018, three years after GST was first introduced. In 2023, the government announced that it is considering the reintroduction of the GST.
