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

 

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

Mid-year update — rates and confirmed measures as of 25 July 2026 

Value Added Tax (VAT) is employed in over 170 countries worldwide as a key source of tax revenue. Below is a comprehensive table of current VAT rates (standard and reduced) for every country that operates a VAT/GST system, organised by region and then alphabetically. Countries without a VAT (such as the United States or Hong Kong) are excluded. All data reflects rates in effect as of July 2026, including confirmed changes taking effect later in the year, and updates the January 2026 edition of this table. 

Each entry lists the country’s standard VAT rate and any reduced rates that apply (lower positive rates on certain essential goods or services). Many nations, especially in Europe, use several rates: a higher standard rate on most supplies and one or more reduced rates on basics such as food, medicines and books. Zero-rated and exempt supplies exist in most jurisdictions but are not itemised here, as the focus is on positive VAT rates. 

What’s changed since the January 2026 edition 

The table below tracks the confirmed and proposed rate movements recorded since this article was first published on 5 January 2026 — including Belgium’s March hospitality increase, the July 2026 wave of sector changes, the UK’s zero-rating of domestic electricity, and other later-2026 measures. 

Effective	Country	Change since the January 2026 edition
1 Jan 2026	Germany	Reduced 7% VAT rate for restaurant and catering meals made permanent (beverages remain at 19%).
1 Jan 2026	Netherlands	Overnight/hotel accommodation moved from the 9% reduced rate back to the 21% standard rate (camping excluded).
1 Jan 2026	Finland	Reduced rate cut from 14% to 13.5% across a broad range of goods and services.
1 Jan 2026	Lithuania	Reduced rate raised from 9% to 12% (accommodation, culture, publications).
1 Jan 2026	Slovakia	VAT on high-sugar and high-salt foods raised from 19% to 23% (baby food, pure juices and some dairy excepted).
1 Jan 2026	Czech Republic	Single 12% rate for restaurant services/non-alcoholic beverages; 0% on prescription medicines.
1 Jan 2026	Zimbabwe	Standard VAT raised to 15.5%.
1 Jan 2026	Malawi	Standard VAT raised to 17.5%.
1 Jan 2026	Liberia	GST standard rate raised by one percentage point.
1 Jan 2026	Ghana	Rate restructuring reducing the effective standard VAT burden.
1 Jan 2026	Bhutan	New GST regime introduced at a 5% standard rate.
1 Mar 2026	Belgium	Reduced rate on hotels, takeaway meals, leisure and entertainment raised from 6% to 12%; proposed rises on other categories were withdrawn.
1 Jul 2026	Austria	Food VAT cut to 5%.
1 Jul 2026	Ireland	Hospitality/restaurant reduced VAT rate cut to 9%.
1 Jul 2026	Spain	Temporary reduced VAT rate on energy ended (returns to standard 21%).
1 Jul 2026	Latvia	Temporary reduced VAT on selected essentials introduced.
1 Jul 2026	Congo (Rep.)	VAT on non-resident digital services introduced.
1 Jul 2026	Sri Lanka	VAT on non-resident providers of digital services introduced.
1 Aug 2026	Gibraltar	New 15% Transaction Tax introduced (Gibraltar historically had no VAT).
1 Aug 2026	Brazil	VAT on non-resident digital services applied.
1 Sep 2026	Azerbaijan	VAT on non-resident digital services introduced.
1 Sep 2026	United Kingdom	Temporary VAT cut on children’s meals and attractions ended.
1 Oct 2026	United Kingdom	VAT on domestic electricity cut from 5% to 0% (Great Britain only; gas stays at 5%). Temporary measure to 31 Mar 2027; Northern Ireland remains at 5% under the Windsor Framework.
1 Oct 2026	Thailand	Standard VAT rate rising from 7% to 10%.
1 Nov 2026	Uruguay	Tourism VAT reduction ends.
Proposed	Russia	Draft measure to raise the standard VAT rate from 20% to 22%.

Note: sector-specific and reduced-rate changes affect only the categories listed; standard rates for those countries are unchanged unless stated. 

Spotlight: UK zero-rates domestic electricity 

On 21 July 2026 the UK government announced that VAT on domestic electricity in Great Britain will be cut from the reduced 5% rate to 0%, effective 1 October 2026. Key points for compliance and pricing: 

• Electricity only — domestic gas, heating oil,coaland LPG remain at the 5% reduced rate, creating a VAT split within the domestic energy sector. 
• Great Britain only — Northern Ireland stays at 5%, as EU VAT rules on goods continue to apply under the Windsor Framework.
• Temporary — the 0% rate currently runs to 31 March 2027, with any extension to be confirmed at the Autumn Budget.

VAT around the world – highest vs. lowest standard rates 

Standard rates vary widely. The highest standard VAT rate remains 27% (Hungary); the lowest is 4.5% (Andorra). Most countries sit between 5% and 25%. EU member states must apply a standard rate of at least 15% under the EU VAT Directive, while several non-EU states — notably the Gulf countries — apply much lower rates around 5%. Reduced rates, where used, typically range from about 1% to 15%. 

Europe (EU & other European countries) 

European Union member states 

Country	Standard VAT	Reduced VAT rate(s)
Austria	20%	13%; 10% (food to 5% from 1 Jul 2026)
Belgium	21%	12%; 6% (hotels/catering/leisure moved 6%→12% from 1 Mar 2026)
Bulgaria	20%	9%
Croatia	25%	13%; 5%
Cyprus	19%	9%; 5%; 3%
Czech Republic	21%	12%; 0% (prescription medicines)
Denmark	25%	None
Estonia	24%	13%; 9%
Finland	25.5%	13.5%; 10%
France	20%	10%; 5.5%; 2.1%
Germany	19%	7% (restaurant meals reinstated at 7% from 1 Jan 2026)
Greece	24%	13%; 6% (island reductions rolled over)
Hungary	27%	18%; 5%
Ireland	23%	13.5%; 9%; 4.8% (hospitality cut to 9% from 1 Jul 2026)
Italy	22%	10%; 5%; 4%
Latvia	21%	12%; 5% (temporary cut on essentials from 1 Jul 2026)
Lithuania	21%	12%; 5%
Luxembourg	17%	14%; 8%; 3%
Malta	18%	12%; 7%; 5%
Netherlands	21%	9% (accommodation moved 9%→21% from 1 Jan 2026)
Poland	23%	8%; 5%
Portugal	23%	13%; 6%
Romania	21%	11%
Slovakia	23%	19%; 5% (high sugar/salt foods 19%→23% from 1 Jan 2026)
Slovenia	22%	9.5%; 5%
Spain	21%	10%; 4% (temporary energy VAT cut ended 1 Jul 2026)
Sweden	25%	12%; 6%

 

Other European countries 

Country	Standard VAT	Reduced VAT rate(s)
Albania	20%	10%; 6%
Andorra	4.5%	2.5%; 1%
Belarus	20%	10%
Bosnia & Herzegovina	17%	None
Georgia	18%	None
Gibraltar	15% (Transaction Tax)	New levy introduced 1 Aug 2026
Iceland	24%	11%
Moldova	20%	12%; 8%
Montenegro	21%	7%
North Macedonia	18%	10%; 5%
Norway	25%	15%; 12%
Russia	20% (rise to 22% proposed)	10%
Serbia	20%	10%
Switzerland	8.1%	3.8%; 2.6%
Turkey	20%	10%; 1%
Ukraine	20%	14%; 7%
United Kingdom	20%	5%; 0% (domestic electricity in GB from 1 Oct 2026; NI stays 5%)

Africa 

Country	Standard VAT	Reduced VAT rate(s)
Algeria	19%	9%
Angola	14%	7%; 5%
Cameroon	19.25%	None
Egypt	14%	5%
Ethiopia	15%	None
Ghana	~20% (restructured)	Effective standard burden reduced from 1 Jan 2026
Ivory Coast	18%	9%
Kenya	16%	8%
Liberia	GST raised +1%	Standard GST rate up from 1 Jan 2026
Malawi	17.5%	Raised from 16.5% on 1 Jan 2026
Morocco	20%	14%; 10%; 7%
Nigeria	7.5%	None
Rwanda	18%	None
Senegal	18%	10%
South Africa	15%	0% on basic foods
Tanzania	18%	None
Tunisia	19%	13%; 7%
Uganda	18%	None
Zambia	16%	None
Zimbabwe	15.5%	Raised from 15% on 1 Jan 2026

Americas 

Country	Standard VAT	Reduced VAT rate(s)
Argentina	21%	10.5%; 2.5%
Bolivia	13%	None
Brazil	IBS/CBS transition (2026)	Dual VAT phased in; ICMS/ISS being replaced
Canada	5% (federal GST)	Provincial HST 13%–15% in most provinces
Chile	19%	None
Colombia	19%	5%
Costa Rica	13%	4%; 2%; 1%
Dominican Republic	18%	16%
Ecuador	15%	5%
Mexico	16%	0% (food, medicine)
Panama	7%	10%; 15% (specific goods)
Paraguay	10%	5%
Peru	18%	None
Uruguay	22%	10% (tourism VAT cut ends 1 Nov 2026)

Middle East 

Country	Standard VAT	Reduced VAT rate(s)
Bahrain	10%	0%
Iran	9%	None
Israel	18%	None
Jordan	16%	4%; 0%
Lebanon	11%	None
Oman	5%	0%
Saudi Arabia	15%	0%
United Arab Emirates	5%	0%
Yemen	5%	None

Asia & Oceania 

Country	Standard VAT	Reduced VAT rate(s)
Australia	10% (GST)	0% (fresh food, medical)
Bangladesh	15%	7.5%; 5%
Bhutan	5% (GST)	New GST introduced 1 Jan 2026
Cambodia	10%	None
China	13%	9%; 6%
Fiji	15%	0%
India	18% (GST)	5%; 12%; 28%
Indonesia	11%	12% on luxury goods
Japan	10%	8% (food, non-alcoholic)
Malaysia	6%–10% (SST)	Sales & service tax bands
Nepal	13%	None
New Zealand	15% (GST)	None (broad base)
Pakistan	18%	Varied lower rates
Philippines	12%	None
Singapore	9% (GST)	0% (exports, finance)
South Korea	10%	0% (some)
Sri Lanka	18%	Non-resident digital services taxed from 1 Jul 2026
Taiwan	5%	None
Thailand	7% (rising to 10% on 1 Oct 2026)	None
Vietnam	10%	8% reduced rate extended through 2026; 5%

Sources & further reading 

• Vatcalc – 2026 global VAT rate changes 

• Global VAT Compliance – VAT/GST rate changes 2026 

• Tax Foundation – VAT Rates in Europe, 2026 

• UK Government (GOV.UK) – VAT on domestic electricity 

• European Commission – VAT rates 

• EY – Worldwide VAT, GST and Sales Tax Guide 2026 

Disclaimer: rates are compiled from the sources above and reflect the position at the date of publication. Reduced-rate scope depends on national law and product/service classification. Always verify against official guidance before applying a rate. 

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