Global VAT Rates by Country (2026) – Standard and Reduced Rates

Each entry lists the country’s standard VAT rate and any reduced rates applicable (i.e. lower positive rates applied to certain essential goods or services). Many nations, especially in Europe, use multiple VAT rates: a higher standard rate on most goods/services and one or more reduced rates on basic necessities (like food, medicines, books) to lessen consumers’ burden. Zero-rated supplies (0% VAT) and exempt items exist in many jurisdictions but are not itemized in the table since the focus is on positive VAT rates. [globalvatc…liance.com], [globalvatc…liance.com]

Regions: For clarity, countries are grouped into broad regions (Europe, Africa, Americas, Middle East, and Asia & Oceania). This grouping is geographic and not based on formal organizations or trade blocs. Within each region, countries appear alphabetically.

European countries generally have high standard VAT rates (typically 17%–27%). EU member states are required by EU law to have a standard rate not lower than 15%, and many have multiple reduced rates for essential goods per the EU VAT Directive reforms of 2022. Below are the VAT rates across Europe: [globalvatc…liance.com] [taxation-c….europa.eu]

Notes: European Union members commonly have two reduced rates (e.g. Belgium’s 6% and 12%, Italy’s 5%, 10%, etc.) as allowed by EU rules. Some also maintain a “super-reduced” rate under 5% (e.g. Spain 4%; France 2.1%) for very specific items like newspapers or medicine. A few microstates mirror a larger neighbor’s VAT: e.g. Monaco applies French VAT rates. Non-EU European countries like Norway, Switzerland, and UK also have VAT/GST with slightly differing scopes (Norway’s “VAT” covers most goods at 25%, but a lower 12% on travel and 15% on food). [globalvatc…liance.com], [globalvatc…liance.com] [globalvatc…liance.com] [skatteetaten.no]

Most European countries do not apply reduced rates to broad categories of services like utilities or fuel (often handled via exemptions or refunds). An exception is Luxembourg (multiple reduced rates down to 3%, lowest in the EU) and Ireland (multiple reduced rates including a unique 4.8% for agriculture). At the high end, Hungary at 27% standard stands out as the world’s highest, while Luxembourg at 17% is the EU’s lowest standard rate. Note that some European rates changed recently: e.g. Finland increased to 25.5% in 2025, Estonia to 22% (and 24% by 2025), and Slovakia to 23% from 20% in 2025. These updated rates are reflected above. [globalvatc…liance.com] [globalvatc…liance.com] [vatcalc.com]

Nearly all African countries have VAT systems, generally introduced in the 1990s–2000s as part of tax reforms. Standard VAT rates in Africa mostly range from 14% to 20%, with a few lower or higher outliers. It is less common for African VAT regimes to have multiple reduced rates – many apply a single rate nationwide, with basic necessities often zero-rated or exempt rather than taxed at a reduced percentage.

Notes: Several North African countries have multiple VAT rates: Morocco applies three reduced rates (7%, 10%, 14%) in addition to its 20% standard; Tunisia similarly has 7% and 13% reduced tiers under its 19% standard. In contrast, many Sub-Saharan African nations use a single rate (e.g. Kenya 16%, Nigeria 7.5%, South Africa 15%) and rely on exemptions/zero-rating for basic foodstuffs rather than a reduced percentage. [globalvatc…liance.com] [taxsummaries.pwc.com], [taxsummaries.pwc.com]

Some recent changes in Africa’s VAT landscape as of 2026 include: Ghana increased its VAT base rate to 15% (from 12.5%) in 2023, though with additional health and education levies bringing the effective consumer rate to about 20%. Zimbabwe raised its standard rate from 14.5% to 15% effective January 2026. Egypt’s standard 14% VAT is accompanied by a reduced 5% for certain goods (e.g. machinery). A few African countries have relatively low VAT: e.g. Nigeria’s 7.5% (recently increased from 5%) is one of the lowest standard VAT rates globally. On the higher end, Algeria (19%) and Cameroon (19.25%) are above the regional average. [taxsummaries.pwc.com] [vatcalc.com] [globalvatc…liance.com] [globalvatc…liance.com], [taxsummaries.pwc.com]

VAT (or GST) in the Americas varies by country. Most Latin American countries have VAT systems with standard rates typically between 12% and 19%, often called “IVA” in Spanish-speaking countries. North America is a special case: the United States has no federal VAT (it uses state-level sales taxes, so it’s excluded here), while Canada has a federal GST of 5% combined with provincial sales taxes (or harmonized VAT) totaling up to 15%. Many Caribbean nations adopted VAT in the 2010s to broaden their tax base. [taxsummaries.pwc.com]

Notes: In South America, Chile (19%), Colombia (19%), Argentina (21%), and Uruguay (22%) have relatively high standard VAT rates. Paraguay at 10% is notably low, and it uniquely offers a 5% reduced rate on certain goods like basic foods and pharmaceuticals. Brazil does not have a single nationwide VAT; instead it operates state-level VAT (ICMS) typically around 17–18% (with some states up to 20%). Brazil also levies other cumulative taxes (PIS/COFINS) and a services tax (ISS) – effectively a complex multi-rate system, so an exact “standard rate” is hard to pinpoint. We list ~17–20% as the typical ICMS range. [globalvatc…liance.com], [globalvatc…liance.com] [taxsummaries.pwc.com] [globalvatc…liance.com]

In Central America and the Caribbean, standard rates range from about 7% to 15%. Panama’s 7% IVA is the lowest in the Western Hemisphere. Costa Rica (13%) has multiple reduced rates (4%, 2%, 1%) for specific goods/services since its 2019 VAT reform. Several Caribbean states have implemented VAT: e.g. Barbados 17.5% (plus a special 22% on cell phone usage), Trinidad & Tobago 12.5%, Jamaica 15%, Belize 12.5%. Others like Bahamas (10%) and Guyana (14%) use VAT, though some small islands (e.g. Cayman Islands, British Virgin Islands) have no VAT. [taxsummaries.pwc.com] [globalvatc…liance.com]

North America: The United States does not impose a national VAT (hence omitted). Canada applies a 5% federal GST; many provinces harmonize this into a combined VAT (HST) of 13–15%, but since that isn’t a separate reduced rate, we list Canada’s federal rate. Mexico’s VAT is 16% nationwide, with a limited 8% rate in border regions to boost those economies (not a general reduced rate for categories of goods). [globalvatc…liance.com] [taxsummaries.pwc.com]

VAT is a relatively new phenomenon in much of the Middle East. Several Gulf Cooperation Council (GCC) states introduced VAT in 2018–2019: the UAE and Saudi Arabia first at 5%, with Saudi Arabia tripling to 15% in 2020. Others like Bahrain and Oman followed. A few Middle Eastern countries still have no VAT (e.g. Kuwait, Qatar – listed as “N/A”). Where implemented, standard rates in this region range from 5% to 15%. Reduced rates are uncommon in the Gulf states (most have a single flat rate).

Notes: The GCC states (Saudi Arabia, UAE, Bahrain, Oman) all use a single VAT rate on most goods and services (with certain exemptions or zero-rating for essentials like basic food, healthcare, education, etc., as per GCC framework agreements). Saudi Arabia raised its VAT from 5% to 15% in July 2020 to boost revenue. Bahrain doubled its rate from 5% to 10% effective Jan 2022. The UAE and Oman remain at 5%. Kuwait and Qatar have yet to implement VAT (they are “N/A” above). [globalvatc…liance.com], [globalvatc…liance.com] [vatcalc.com] [globalvatc…liance.com]

Outside the Gulf, Israel has a long-standing VAT (standard rate recently increased to 18% in 2023) and no reduced rates. Turkey (Türkiye) applies a 20% general VAT and two reduced rates: 10% and 1% (the 1% super-reduced applies to a few items like certain foods). Lebanon’s VAT is 11% with no reduced tiers. Jordan imposes a 16% general sales tax functioning like a VAT; Jordan doesn’t have official reduced percentages, though certain goods are taxed at lower effective rates via exemptions. Iran uses a 9% VAT (often described as “sales tax”) uniformly. [globalvatc…liance.com]

Notably, Egypt, Morocco, and Tunisia – though part of the Middle East/North Africa region – are listed under Africa for our purposes. Within the Middle East, reduced VAT rates are rare; taxation policy often uses outright exemptions (e.g. many Gulf countries zero-rate education, healthcare, etc., rather than having intermediate rates).

Most countries in Asia (and Oceania) have adopted VAT or GST, typically with standard rates from 5% up to 18% (aside from a few higher outliers in Central Asia). China and India have complex multi-rate systems labeled as VAT or GST, while others like Japan use a simpler two-rate system. Oceania’s major economies (Australia, New Zealand) levy GST around 10–15% with no reduced rates.

Notes: East Asia: China has a multi-tier VAT: 13% is the highest rate (for most goods), 9% and 6% apply to specified categories (e.g. 9% for certain utilities, 6% for services). Additionally, a 3% special rate exists for small-scale taxpayers, but China has phased out some lower rates in recent reforms. Japan uses a simple two-rate consumption tax: 10% standard and 8% for food and printed media. South Korea maintains a single 10% VAT with few reduced-rate exceptions (zero-rating on exports, etc.). Taiwan similarly uses a flat 5% VAT. [taxsummaries.pwc.com] [globalvatc…liance.com]

South Asia: India implemented a Goods and Services Tax (GST) in 2017 with four main rates: 5%, 12%, 18%, 28%. The standard GST rate is often cited as 18% (applying to most goods/services). India’s lower GST slabs of 5%, 12% (and a special 3% on gold, 0.25% on diamonds) are listed as “reduced” rates above. Bangladesh has a standard 15% VAT but multiple reduced rates down to 1.5% for specific sectors. Pakistan has a fragmented system: a federal sales tax on goods (18%) and provincial service taxes (~15-16%), so it doesn’t have a unified VAT rate to list. Sri Lanka currently applies 18% VAT (having moved it up and down; it was temporarily 8% in 2019-2020) with no reduced rates in force. Nepal uses 13% VAT single rate. Bhutan introduced a 7% GST in 2025, replacing sales tax. [taxsummaries.pwc.com] [globalvatc…liance.com] [vatcalc.com]

Southeast Asia: Indonesia raised VAT from 10% to 11% in April 2022 (plans 12% by 2025). Thailand’s legal VAT rate is 10% but has been temporarily reduced to 7% for decades (the 7% is effectively the ongoing rate). Malaysia had a 6% GST but abolished it in 2018 (switched back to a Sales Tax/Service Tax system), so it’s excluded. Philippines charges 12% VAT with no reduced rate. Vietnam normally has 10% VAT with a 5% reduced rate on essentials; however, Vietnam temporarily cut the standard rate to 8% (from 10%) for 2022–2024 to stimulate the economy, and that 8% reduction was extended through end of 2026 for many goods. (In the table, we show “10% (currently 8%)” for Vietnam’s standard rate to reflect this temporary measure.) [globalvatc…liance.com] [taxsummaries.pwc.com]

Central Asia: Kazakhstan (12%) and Uzbekistan (12%) have relatively low standard VAT rates. Tajikistan stands out by employing multiple reduced rates (10%, 7%, 5%) besides its 14% standard – one of the few Asian nations with several VAT tiers. Russia uses a 22% standard rate and a 10% reduced rate (for foodstuffs, children’s products, medicines, etc.). Belarus (often grouped with Europe) likewise has 20% and 10% rates. [taxsummaries.pwc.com], [taxsummaries.pwc.com] [globalvatc…liance.com]

Oceania: Australia and New Zealand have broad-based GST systems with 10% and 15% rates respectively, and no reduced rates – most goods and services are taxed uniformly (with a few exemptions like basic food in Australia being GST-free). Several smaller Oceanic nations also have VAT/GST: e.g. Vanuatu 15%; Papua New Guinea 10%; Fiji 9% (Fiji lowered VAT from 15% to 9% in 2016 and has a 0% on some essentials); Samoa 15%; Tonga 15%. These generally follow the single-rate model. [globalvatc…liance.com], [globalvatc…liance.com] [globalvatc…liance.com]

Sources: The above information is compiled from official government releases and tax summaries. Key references include the PwC Worldwide Tax Summaries (2025 updates) for standard rates, the European Commission and country tax authority publications for European VAT details, and global VAT guides (e.g. Global VAT Compliance updates) for recent changes. All rates are up-to-date as of January 2026. For further verification or details on specific countries (such as scope of reduced rates or upcoming changes), see the cited sources and official tax authority websites. [taxsummaries.pwc.com], [taxsummaries.pwc.com] [globalvatc…liance.com], [skatteetaten.no] [globalvatc…liance.com], [globalvatc…liance.com]