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Tax Rates by Country

Explore a comprehensive global guide to indirect tax rates, including VAT, GST, and sales tax, with insights into country-specific regulations and compliance requirements.

Indirect Taxes Around the World

Value Added Tax (VAT)

VAT is the most common indirect tax worldwide, most notably across countries in Latin America, Europe, Africa, and Asia. It is a multi-stage tax levied on the value of goods at each stage of the production and distribution chain. Due to its importance and widespread presence, businesses operating in these regions must dedicate time and effort to learn how to navigate VAT by country.

Goods and Services Tax (GST)

GST is a consumption-based tax similar to VAT. It is implemented in countries like Canada, Australia, and India. There are various GST systems, each with unique rules and exemptions, making local knowledge vital for companies that operate in these regions and countries.

Sales Tax

Opposite to VAT and GST, which are multi-stage taxes, sales tax is a single-stage tax levied at the point of sale. It is predominantly used in the United States, where the tax rates and applicable rules vary widely by state. Moreover, the uniqueness of the US sales tax system is that local sales tax rules are applicable alongside state sales tax rules.

Europe

The European indirect tax system is mainly known for the harmonized VAT system of the European Union (EU). However, EU Member States can determine VAT rates by country. In addition, not all European countries are part of the EU. Therefore, to fully comprehend the European VAT landscape, it is necessary to understand the tax rates by country regardless of EU membership.
EU Member States
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden
Non-EU Countries
United Kingdom (UK)

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Asia-Pacific

The Asia-Pacific region includes countries with VAT and GST systems. Additionally, Japan has a Consumption Tax similar to GST and VAT, which adds to the diversity of indirect tax regimes in the region.

Australia, New Zealand, Japan, India.

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Africa and the Middle East

Emerging and developing markets in Africa and the Middle East are adopting VAT and GST systems to monitor transactions and increase state revenues. Due to specific economic and other circumstances, sometimes it is challenging to be aware of tax by country rules that apply to the region.
Africa
Tanzania, Kenya, South Africa, Nigeria, Mozambique
The Middle East
United Arab Emirates, Saudi Arabia

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In the age of the digital economy and the interconnected world of international trade, indirect taxes, such as Value Added Tax (VAT), Goods and Services Tax (GST), and sales tax,  play a crucial role in shaping national and regional economies. These taxes significantly impact businesses and consumers, making it essential for international suppliers to understand tax rates by country and remain compliant and competitive.

Whether you are an entrepreneur expanding to new markets or a multinational corporation dealing with the complexities of the supply chain, knowing indirect taxes by country is vital. This guide provides an overview of indirect taxes and serves as a gateway to country-specific insights, such as what is the current rate of VAT.