Consumption Tax Trends 2020

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 November 2020, 170 countries and territories in the world have implemented a VAT.

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

No.	Country	Implementation	Rates 2020 (%)
			Standard1	Reduced2	Increased
1	Albania	1995	20	0, 6
2	Algeria	1992	19	0, 9
3	Andorra	2013	4.5	0, 1, 2.5	9.5
4	Angola	2019	14
5	Antigua and Barbuda3	2007	15	0, 13, 14
6	Argentina	1974	21	2.5, 5, 10.5	27
7	Armenia	1993	20	0
8	Australia	2000	10	0
9	Austria4	1973	20	10, 13
10	Azerbaijan	1992	18	0
11	Bahamas	2015	12
12	Bangladesh	1991	15	5, 7
13	Barbados	1997	17.5	0, 7.5
14	Bahrain	2018	5	0
15	Belarus	1991	20	0, 10	25
16	Belgium	1971	21	0, 6, 12
17	Belize	2006	12.5	0
18	Benin	1991	18	0
19	Bolivia	1986	13	0
20	Bosnia Herzegovina	2006	17
21	Botswana	2002	12	0
22	Brazil	1964	17, 18	4, 7, 12	25, 30
23	Bulgaria	1994	20	9
24	Burkina Faso	1993	18	0
25	Burundi	2009	18	0, 10
26	Cambodia	1999	10
27	Cameroon	1999	19.25	0
28	Canada5	1991	GST/HST: 5, 13, 15
29	Cape Verde	2004	15	0
30	Central African Republic	2001	19	0, 5
31	Chad	2000	18	0, 9
32	Chile	1975	19
33	China (People’s Republic)	1994	13	1, 3, 6, 9
34	Colombia	1983	19	0, 5
35	Commonwealth of Dominica	2006	15	10
36	Congo (Dem. Republic)	2012	16	0
37	Congo (Republic)	1997	18	0, 5
38	Cook Islands	1997	15	0
39	Costa Rica	2019	13	4, 2, 1
40	Côte d’Ivoire	1960	18	0, 9
41	Croatia	1998	25	5, 13
42	Cyprus6	1992	19	0, 5, 9
43	Czech Republic	1993	21	10, 15
44	Denmark	1967	25	0
45	Djibouti	2009	10	0, 7
46	Dominican Republic	1983	18	0, 16	-
47	Ecuador	1970	12	0
48	Egypt	2017	14	0, 5
49	El Salvador	1992	13	0
50	Equatorial Guinea	2005	15	0, 6
51	Estonia	1991	20	0, 9
52	Eswatini	2012	15	0
53	Ethiopia	2003	15	0
54	Faroe Islands	1993	25	0
55	Fiji	1992	9	0
56	Finland	1994	24	0, 10, 14
57	France7	1968	20	2.1, 5.5, 10
58	Gabon	1995	18	0, 5, 10
59	Gambia	2013	15	0
60	Georgia	1993	18	0
61	Germany	1968	19	7
62	Ghana	1998	12.5	0, 3
63	Greece8	1987	24	6, 13
64	Grenada	2010	15	0, 10	20
65	Guatemala	1992	12	0
66	Guinea	1996	18	0
67	Guinea-Bissau	2001	17	0, 10	20
68	Guyana	2007	14	0
69	Haiti	1982	10
70	Honduras	1964	15	0	18
71	Hungary	1988	27	5, 18
72	Iceland	1990	24	0, 11
73	India	2017	12, 18	0, 5	28
74	Indonesia	1985	10	0	10 – 125
75	Iran9	2008	9	0	12+3, 20 (5 or 10) 25-30
76	Ireland	1972	23	0, 4.8, 9, 13.5
77	Isle of Man	1973	20	0, 5
78	Israel10	1976	17	0
79	Italy	1973	22	0, 4, 5, 10
80	Jamaica	1991	16.5	2, 10	21.5, 25
81	Japan	1989	10	8
82	Jersey	2008	5	0
83	Jordan	2001	16	0, 4, 5, 10	26
84	Kazakhstan	1992	12	0
85	Kenya	1990	14	0
86	Kiribati	2014	12.5	0
87	Korea (South)	1977	10
88	Kosovo11	2001	18	8
89	Kyrgyzstan	1999	12	0
90	Lao (People's Democratic Republic)	2010	10	0
91	Latvia	1995	21	5, 12
92	Lebanon	2002	11	0
93	Lesotho	2003	15	0, 9
94	Liechtenstein	1995	7.7	2.5, 3.7
95	Lithuania	1994	21	5, 9
96	Luxembourg	1970	17	3, 8, 14
97	Madagascar	1994	20	0
98	Malawi	2002	16.5	0
99	Maldives	2011	6	0	12
100	Mali	1991	18	5
101	Malta	1999	18	0, 5, 7
102	Mauritania	1995	16		18
103	Mauritius	1998	15
104	Mexico	1980	16	0
105	Moldova	1998	20	0, 8
106	Monaco	1968	20	2.1, 5.5, 10
107	Mongolia	1998	10	0
108	Montenegro	2003	21	0, 7
109	Morocco	1986	20	0, 7, 10, 14
110	Mozambique	1999	17	0, 5
111	Namibia	2000	15	0
112	Nepal	1997	13	0
113	Netherlands	1969	21	9
114	New Zealand	1986	15	0
115	Nicaragua	1975	15	0, 7
116	Niger	1986	19	0, 5, 10
117	Nigeria	1994	7.5	0
118	Niue	2009	12.5	0
119	North Macedonia	2000	18	5
120	Norway	1970	25	0, 12, 15
121	Pakistan	1990	17	0	18.5, 21, 22 and 25
122	Panama	1977	7		10, 15
123	Papua New Guinea	1999	10	0
124	Paraguay	1993	10	0, 5
125	Peru12	1991	16, 2	0
126	Philippines	1988	12	0, 5
127	Poland	1993	23	0, 5, 8
128	Portugal13	1986	23	6, 13
129	Romania	1993	19	5, 9
130	Russia	1991	20	0, 10
131	Rwanda	2001	18	0
132	Saint Kitts and Nevis	2010	17	10
133	Saint Lucia	2012	16	0, 10
134	Saint Vincent and the Grenadines	2007	15	0, 10
135	Samoa	1994	15	0
136	Saudi Arabia	2018	5	0
137	Senegal	1980	18	0, 10
138	Serbia	2005	20	10
139	Seychelles	2012	15	0
140	Sierra Leone	2009	15	0
141	Singapore	1994	7	0
142	Slovak Republic	1993	20	10
143	Slovenia	1999	22	5, 9.5
144	South Africa	1991	15	0
145	Spain14	1986	21	4, 10
146	Sri Lanka	1998	8	0	15
147	Sudan	2000	18	0
148	Sweden	1969	25	0, 6, 12
149	Switzerland	1995	7.7	2.5, 3.7
150	Chinese Taipei	1986	5	0
151	Tajikistan	1992	18	5
152	Tanzania	1998	18	0
153	Thailand15	1992	10	0, 7
154	Togo	1995	18	10
155	Tonga	2005	15
156	Trinidad and Tobago	1990	12.5	0
157	Tunisia	1988	19	0, 7, 13
158	Turkey	1984	18	1, 8
159	Turkmenistan	1992	15	0
160	Uganda	1996	18	0
161	Ukraine	1992	20	0, 7
162	United Arab Emirates	2018	5	0
163	United Kingdom	1973	20	0, 5
164	Uruguay	1972	22	0, 10
165	Uzbekistan	1992	20	0
166	Vanuatu	1998	12.5	0
167	Venezuela	1993	16	8	31
168	Vietnam	1999	10	0, 5
169	Zambia	1995	16	0
170	Zimbabwe	2004	14.5	0
	Bhutan16
	Oman17
	Malaysia18

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. VAT rate measures taken by countries as part of the Covid-19 crisis are not reflected in this table given their temporary nature.

3. Antigua and Barbuda: the reduced rate of 12% was replaced with reduced rates of 13% and 14% on 13 March 2020.

4. Austria: The standard VAT rate is 19% in Jungholtz and Mittleberg.

5. Canada: additional HST rates apply on the top of the federal 5% GST rate in several provinces (see Annex Table 2.A2.1)

6. 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.

7. 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)

8. 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).

9. 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.

10. 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.

11. 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.

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

13. 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%.

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

15. Thailand: the standard VAT rate was increased from 7% to 10% on 1 October 2020.

16. Bhutan: a GST Act was approved by Parliament in 2020 for a possible implementation in 2022

17. Oman: The government has announced the introduction of VAT in early 2021

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

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.