Consumption Tax Trends 2022

Annex A. Countries with VAT

Almost all countries levy general consumption taxes i.e. taxes on the sale of most goods and services. The general consumption tax applied by the majority of those countries is value added tax (VAT¹) i.e. a tax collected at all stages of the processes of production and distribution of goods and services, accumulation of the tax being prevented by allowing businesses to deduct the tax they incur on their inputs from the tax they collect on their outputs. Exports of goods and services are generally within the scope of VAT, although they are commonly zero rated. On the other hand, the importation of goods and services is subject to tax to ensure the neutrality of the tax system (see Chapter 1). A minority of countries (and some sub-national entities) apply retail sales taxes, i.e. single-stage taxes on goods and services supplied to final consumers (these are not listed in the table below). All OECD countries levy VAT, except the United States, where sales taxes are levied at sub-national level (see Chapter 1).

As of 1 October 2022, 174 countries and territories in the world had implemented a VAT.

Table A A.1. Countries and territories operating a VAT

No.	Country	Implementation	Rates 2022 (%)
Standard1	Reduced2	Increased
1	Afghanistan	2021	10	0
2	Albania	1995	20	0, 6
3	Algeria	1992	19	9
4	Andorra	2013	4.5	0, 1, 2.5	9.5
5	Angola	2019	14	0, 1, 2, 5, 7
6	Anguilla	2022	13	0
7	Antigua and Barbuda	2007	15	0, 14
8	Argentina	1974	21	2.5, 5, 10.5	27
9	Armenia	1993	20	0
10	Australia	2000	10	0
11	Austria3	1973	20	10, 13
12	Azerbaijan	1992	18	0
13	Bahamas	2015	10
14	Bangladesh	1991	15	5, 7, 10
15	Barbados	1997	17.5	0, 7.5
16	Bahrain	2018	10	0
17	Belarus	1991	20	0, 10	25, 26
18	Belgium	1971	21	0, 6, 12
19	Belize	2006	12.5	0
20	Benin	1991	18	0
21	Bhutan4	2022	7	0
22	Bolivia	1986	13	0
23	Bosnia Herzegovina	2006	17
24	Botswana	2002	12	0
25	Brazil	1964	17, 18	4, 7, 12	25, 30
26	Bulgaria	1994	20	9
27	Burkina Faso	1993	18	0, 10
28	Burundi	2009	18	0, 10
29	Cambodia	1999	10
30	Cameroon	1999	19.25	0
31	Canada5	1991	GST/HST: 5, 13, 15
32	Cape Verde	2004	15	0, 8
33	Central African Republic	2001	19	0, 5
34	Chad	2000	18	0, 9
35	Chile	1975	19
36	China (People’s Republic)	1994	13	1, 1.5, 3, 6, 9
37	Colombia	1983	19	0, 5
38	Commonwealth of Dominica	2006	15	0, 10
39	Congo (Dem. Republic)	2012	16	0, 8
40	Congo (Republic)	1997	18	0, 5
41	Cook Islands	1997	15	0
42	Costa Rica	2019	13	1, 2, 4
43	Côte d’Ivoire	1960	18	0, 9
44	Croatia	1998	25	5, 13
45	Cyprus6	1992	19	0, 5, 9
46	Czech Republic	1993	21	10, 15
47	Denmark	1967	25	0
48	Djibouti	2009	10	0
49	Dominican Republic	1983	18	0, 16	-
50	Ecuador	1970	12	0
51	Egypt	2017	14	0, 5
52	El Salvador	1992	13	0
53	Equatorial Guinea	2005	15	0, 6
54	Estonia	1991	20	0, 9
55	Eswatini	2012	15	0
56	Ethiopia	2003	15	0
57	Faroe Islands	1993	25	0
58	Fiji	1992	9	0
59	Finland	1994	24	0, 10, 14
60	France6	1968	20	2.1, 5.5, 10
61	Gabon	1995	18	0, 10
62	Gambia	2013	15	0
63	Georgia	1993	18	0
64	Germany	1968	19	7
65	Ghana	1998	12.5	0, 3
66	Greece7	1987	24	6, 13
67	Grenada	2010	15	0, 10	20
68	Guatemala	1992	12	0
69	Guinea	1996	18	0
70	Guinea-Bissau	2001	17	0, 10	20
71	Guyana	2007	14	0
72	Haiti	1982	10
73	Honduras	1964	15	0	18
74	Hungary	1988	27	5, 18
75	Iceland	1990	24	0, 11
76	India	2017	12, 18	0, 5	28
77	Indonesia	1985	11	0	10 – 125
78	Iran8	2008	9	0	12+3, 20 (5 or 10) 25-30
79	Ireland	1972	23	0, 4.8, 9, 13.5
80	Isle of Man	1973	20	0, 5
81	Israel9	1976	17	0
82	Italy	1973	22	4, 5, 10
83	Jamaica	1991	15	2, 10	21.5, 25
84	Japan	1989	10	8
85	Jersey	2008	5	0
86	Jordan	2001	16	0, 2, 4, 5, 10	26
87	Kazakhstan	1992	12	0
88	Kenya	1990	16	0, 8
89	Kiribati	2014	12.5	0
90	Korea	1977	10
91	Kosovo10	2001	18	8
92	Kyrgyzstan	1999	12	0
93	Lao (People's Democratic Republic)	2010	7	0
94	Latvia	1995	21	5, 12
95	Lebanon	2002	11	0
96	Lesotho	2003	15	0, 10
97	Liechtenstein	1995	7.7	2.5, 3.7
98	Lithuania	1994	21	5, 9
99	Luxembourg	1970	17	3, 8, 14
100	Madagascar	1994	20	0
101	Malawi	2002	16.5	0
102	Maldives	2011	6	0	12
103	Mali	1991	18	5
104	Malta	1999	18	0, 5, 7
105	Mauritania	1995	16		18
106	Mauritius	1998	15	0
107	Mexico	1980	16	0
108	Moldova	1998	20	0, 8
109	Monaco	1968	20	2.1, 5.5, 10
110	Mongolia	1998	10	0
111	Montenegro	2003	21	0, 7
112	Morocco	1986	20	0, 7, 10, 14
113	Mozambique	1999	17	0, 5
114	Namibia	2000	15	0
115	Nepal	1997	13	0
116	Netherlands	1969	21	9
117	New Zealand	1986	15	0
118	Nicaragua	1975	15	0
119	Niger	1986	19	0, 5, 10
120	Nigeria	1994	7.5	0
121	Niue	2009	12.5	0
122	North Macedonia	2000	18	5, 10
123	Norway	1970	25	0, 12, 15
124	Oman	2021	5	0
125	Pakistan	1990	17	0 - 16	18.5, 21, 22 and 25
126	Panama	1977	7		10, 15
127	Papua New Guinea	1999	10	0
128	Paraguay	1993	10	5
129	Peru11	1991	16	0
130	Philippines	1988	12	0, 5
131	Poland	1993	23	5, 8
132	Portugal12	1986	23	6, 13
133	Romania	1993	19	5, 9
134	Russia	1991	20	0, 10
135	Rwanda	2001	18	0
136	Saint Kitts and Nevis	2010	17	10
137	Saint Lucia	2012	16	0, 10
138	Saint Vincent and the Grenadines	2007	16	0, 11
139	Samoa	1994	15	0
140	Saudi Arabia	2018	15	0
141	Senegal	1980	18	0, 10
142	Serbia	2005	20	10
143	Seychelles	2012	15	0
144	Sierra Leone	2009	15	0
145	Singapore	1994	7	0
146	Slovak Republic	1993	20	10
147	Slovenia	1999	22	5, 9.5
148	South Africa	1991	15	0
149	Spain13	1986	21	4, 10
150	Sri Lanka	1998	8	0	15
151	Sudan	2000	18	0
152	Sweden	1969	25	0, 6, 12
153	Switzerland	1995	7.7	2.5, 3.7
154	Chinese Taipei	1986	5	0
155	Tajikistan14	1992	18	5
156	Tanzania	1998	18	0
157	Thailand	1992	10	0, 7
158	Togo	1995	18	10
159	Tonga	2005	15
160	Trinidad and Tobago	1990	12.5	0
161	Tunisia	1988	19	0, 7, 13
162	Turkey	1984	18	1, 8
163	Turkmenistan	1992	15	0
164	Uganda	1996	18	0
165	Ukraine	1992	20	0, 7, 14
166	United Arab Emirates	2018	5	0
167	United Kingdom	1973	20	0, 5
168	Uruguay	1972	22	0, 10
169	Uzbekistan	1992	20	0
170	Vanuatu	1998	15	0
171	Venezuela	1993	16	8	31
172	Vietnam	1999	10	0, 5
173	Zambia	1995	16	0
174	Zimbabwe	2004	14.5	0
	Aruba15
	Kuwait16
	Liberia17
	Qatar18
	Suriname19
	Palau20
	Malaysia21

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.

Notes:

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% in Jungholtz and Mittleberg.

4. Bhutan. Standard rate being applied from 1 July 2022 onwards.

5. 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.

6. France. Specific rates also apply in some regions/territories: reduced rates 0.9/2.1/10.0/13.0 (Corsica); standard/reduced rates 8.5/2.1 (Martinique, Guadeloupe, Réunion); standard/reduced rates 16-13/5 (French Polynesia) (see also Annex Table 2.A.1).

7. Greece. Specific regional rates of 4.0%; 9.0% and 17.0% apply in the islands of Leros, Lesbos, Kos, Samos and Chios until 31 December 2020 (see also Annex Table 2.A.1).

8. 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.

9. 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.

10. 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.

11. Peru. In addition to the standard IGV rate of 16%, a 2% sales tax (IPM) is levied at municipal level.

12. Portugal. In the Islands of Azores, the standard VAT rate is 18% 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%.

13. Spain. Rates of 0.0%, 3.0%; 7.0%, 9.50%; 13.50%, 20% apply in the Canary Islands.

14. Tajikistan. From 1 January 2022, the standard VAT rate will be decreased from 18% to 15% for cashless transactions. The VAT rate will be further reduced to 14% from 2024 and to 13% from 2027 for cashless transactions. For cash transactions, the VAT rate will remain at 18% in 2022, and will be raised to 19% in 2024, and to 20% in 2027. The VAT rate reduction aims to incentivize the transition to cashless payments.

15. Aruba. The implementation of VAT, initially planned for 1 January 2023 is delayed to 2024.

16 Kuwait. The government has announced the introduction of VAT in 2023.

16. Liberia. The government announced the implementation of VAT in 2023.

17. Qatar. The implementation of VAT is delayed due to COVID-19 and rising inflation.

18. Suriname. The law introducing Value Added Tax (VAT) was voted by the National Assembly in August 2022 with planned implementation in 2023.

19. Palau. The VAT will be introduced on 1 January 2023, under the name "Palau Goods and Services Tax" PGST.

20. Malaysia. GST was abolished and a single-stage sales tax system was reintroduced on 1 September 2018, three years after GST was first introduced.