VAT / GST Rates by Country
VAT (Value Added Tax) and GST (Goods and Services Tax) are functionally similar consumption taxes accounting for 20-30% of OECD government revenue. For relocating individuals, standard rate determines daily-cost-of-living; for founders and freelancers, the business-registration threshold is the single most-asked compliance question.
Last reviewed: 2026-05-13. Rates change with national budgets — Estonia 22%→24% (July 2025), Slovakia 20%→23% (January 2025), Finland 24%→25.5% (September 2024), Singapore 8%→9% (January 2024) are recent examples.
| Country | Local name | Standard rate | Reduced rates | Registration threshold |
|---|---|---|---|---|
 Brazil | ICMS / IPI / PIS / COFINS | Variable — combined effective ~17-25% depending on state and product | State-by-state; reform pending consolidating into IBS + CBS | Variable by state Brazil's indirect tax system is unusually complex. December 2023 reform creates unified IBS+CBS by 2027. |
 Hungary | ÁFA | 27% | 18% (basic foods, hospitality); 5% (medicines, books, new residential) | HUF 12M (~€30k) for resident SMEs Highest VAT rate in the EU and OECD. |
 Finland | ALV | 25.5% (from September 2024) | 14% (food, restaurants); 10% (books, cinema, sports) | EUR 20,000 Raised from 24% to 25.5% in September 2024 budget. |
 Croatia | PDV | 25% | 13% (food, water, hospitality); 5% (bread, milk, books, medicines) | EUR 40,000 |
 Denmark | Moms | 25% | 0% (newspapers); no reduced rate on most categories — Denmark is unusual in not having a reduced rate | DKK 50,000 (~€6,700) |
 Norway | MVA | 25% | 15% (food); 12% (transport, hotels, cinema) | NOK 50,000 (~€4,400) Non-EU but participates in VAT-like system. |
 Sweden | Moms | 25% | 12% (food, hotels); 6% (books, newspapers, public transport) | SEK 120,000 (~€10,800) |
 Estonia | KMR | 24% (from July 2025; was 22%) | 13% (hotels — from 2025); 9% (books) | EUR 40,000 Raised from 20% → 22% (January 2024) → 24% (July 2025). |
 Greece | ΦΠΑ | 24% | 13% (food, water, hospitality); 6% (medicines, books) | EUR 10,000 |
 Ireland | VAT | 23% | 13.5% (hospitality, building); 9% (newspapers, hairdressing); 0% (food, children clothing, books) | EUR 85,000 (goods) / EUR 42,500 (services) |
 Poland | VAT | 23% | 8% (food, hospitality); 5% (basic food, books); 0% (intra-EU exports) | PLN 200,000 (~€46k) |
 Portugal | IVA | 23% | 13% (restaurants, wine); 6% (food, books, medicines) | EUR 15,000 (raised from €13,500 in 2024) Azores: 16%/9%/4%. Madeira: 22%/12%/5%. |
 Slovakia | DPH | 23% (from January 2025) | 19% (medicines, books, accommodation — new tier); 5% (basic food, sports, restaurants — narrower scope) | EUR 49,790 Major reform January 2025 raised standard from 20% to 23% and added 19% mid-tier. |
 Italy | IVA | 22% | 10% (hospitality, transport); 5% (some food); 4% (basic food, books) | EUR 85,000 forfettario regime |
 Slovenia | DDV | 22% | 9.5% (food, books, hotels); 5% (medicines) | EUR 50,000 |
 Argentina | IVA | 21% | 10.5% (basic food, transport, agricultural); 27% (utilities) | Variable (Monotributo simplified regime) |
 Belgium | TVA / BTW | 21% | 12% (specific construction); 6% (food, water, books, medicines) | EUR 25,000 (small business franchise) |
 Czech Republic | DPH | 21% | 12% (consolidated reduced rate from 2024 — was 10% + 15%) | CZK 2,000,000 (~€80,000) Major 2024 reform consolidated two reduced rates into one 12% rate. |
 Latvia | PVN | 21% | 12% (medicines, books); 5% (specific food) | EUR 50,000 |
 Lithuania | PVM | 21% | 9% (books, hotels); 5% (medicines, disability aids) | EUR 45,000 |
 Netherlands | BTW | 21% | 9% (food, books, transport, hotels) | EUR 20,000 (KOR small-business) |
 Spain | IVA | 21% | 10% (food, transport, hotels); 4% (basic food, books, medicines) | None — registration mandatory at first taxable supply Canary Islands use IGIC (7% standard); Ceuta + Melilla use IPSI. |
 Austria | USt | 20% | 13% (hotels, cultural); 10% (food, books, public transport) | EUR 35,000 |
 Bulgaria | ДДС | 20% | 9% (hotels); 0% (specific exports) | BGN 100,000 (~€51,000) |
 France | TVA | 20% | 10% (restaurants, transport); 5.5% (food, books, medicines); 2.1% (newspapers, medicines reimbursed) | EUR 85,800 (goods) / EUR 37,500 (services) — franchise en base |
 United Kingdom | VAT | 20% | 5% (children car seats, energy); 0% (most food, books, children clothing) | GBP 90,000 (raised from £85,000 in April 2024) |
 Chile | IVA | 19% | 0% (exports) | None |
 Colombia | IVA | 19% | 5% (specific food, agricultural); 0% (basic food, education, medicines) | Common-regime threshold COP 1.4 billion (~$340k) |
 Cyprus | VAT | 19% | 9% (hospitality); 5% (food, medicines, books); 0% (specific exports) | EUR 15,600 |
 Germany | MwSt | 19% | 7% (food, books, public transport, hotels) | EUR 22,000 (small-business Kleinunternehmer) |
 Malaysia | SST | Sales Tax 5%/10% + Service Tax 8% (from March 2024) | Service tax raised from 6% to 8% in March 2024; SST replaced GST in 2018 | Service tax: MYR 500,000-1,500,000 depending on category Malaysia abolished its 6% GST in 2018 and reverted to the pre-GST sales-and-service-tax (SST) system. |
 Romania | TVA | 19% | 9% (food, water, books, medicines); 5% (residential housing, hotels) | RON 300,000 (~€60,000) |
 India | GST | 18% (most goods/services); other slabs 5%/12%/28% | 5% (essential goods); 12% (processed foods); 28% (luxury, automobiles, tobacco) + cess on top | INR 4,000,000 goods / INR 2,000,000 services Complex multi-rate GST since July 2017. Frequent rate adjustments at GST Council meetings. |
 Malta | VAT | 18% | 12% (hotels); 7% (accommodation); 5% (food, books, electricity) | EUR 35,000 (goods) / EUR 24,000 (services) |
 Israel | VAT | 17% (raised from 17% — proposed to 18% from January 2026) | 0% (exports, tourism, fruits/vegetables) | ILS 120,000 (small business / Osek Patur) |
 Luxembourg | TVA | 17% | 14% (specific wines); 8% (electricity, public transport); 3% (food, books, medicines) | EUR 35,000 EU's lowest standard VAT rate. |
 Mexico | IVA | 16% | 8% (border zone); 0% (basic food, medicines, books) | None |
 New Zealand | GST | 15% | 0% (financial services, exports) | NZD 60,000 Most uniform GST in the OECD — minimal exemptions and no reduced rate on food. |
 Saudi Arabia | VAT | 15% | 0% (exports, qualifying medicines/equipment, international transport) | SAR 375,000 (~$100k) Raised from 5% to 15% in July 2020. |
 South Africa | VAT | 15% | 0% (basic food, fuel, education, medical) | ZAR 1,000,000 |
 Indonesia | PPN | 11% (from April 2022; raises to 12% in January 2025) | 0% (exports, certain primary essentials) | IDR 4.8 billion (~$315k) |
 Australia | GST | 10% | 0% (basic food, education, healthcare) | AUD 75,000 (AUD 150,000 for non-profits) |
 Japan | Consumption Tax | 10% | 8% (food, beverages, newspapers) | JPY 10,000,000 Qualified invoice system from October 2023 changed compliance landscape. |
 South Korea | VAT | 10% | 0% (basic food, public services, medical) | None — registration mandatory at first supply |
 Singapore | GST | 9% (from January 2024) | 0% (exports, international services, financial services) | SGD 1,000,000 Raised from 8% to 9% in January 2024 (two-step increase from 7% in 2023). |
 Switzerland | MWST | 8.1% (from 2024) | 3.8% (hotels); 2.6% (food, books, medicines) | CHF 100,000 Standard rate raised from 7.7% to 8.1% in 2024 to fund pensions. |
 Thailand | VAT | 7% | 0% (exports, international transport) | THB 1,800,000 (~$50k) Officially 10% — currently reduced to 7% via cabinet resolution renewed annually since the late 1990s. |
 Canada | GST/HST | 5% federal GST + provincial PST/HST = 5%-15% combined | 0% (basic groceries, prescription drugs) | CAD 30,000 Combined rates: ON 13%, QC 14.975%, NS/NB/NL/PEI 15%, BC 12%, SK 11%, AB 5%. |
 United Arab Emirates | VAT | 5% | 0% (exports, education, healthcare, residential property, gold/diamonds investment grade) | AED 375,000 (~$102k) VAT introduced January 2018 — one of the lowest standard rates globally. |
 United States | Sales Tax (no federal VAT) | State + local 0%-10.25% (Alabama Birmingham among highest; OR/MT/NH/DE have no state sales tax) | Varies by state — many states exempt groceries / medicines | Varies by state (nexus rules apply) The US is the only major OECD economy without a federal VAT. State and local sales taxes vary enormously. |
Reading this matrix
- EU minimum is 15%. EU directive sets the floor; most member states cluster around 20-22%. Hungary's 27% is the EU maximum.
- Reduced rates typically cover food, books, medicines, public transport, and hotels — but with significant variation. NZ's 15% applies almost uniformly with minimal reduced rates.
- Registration thresholds matter for founders. Australia AUD 75k, Singapore SGD 1M, UK £90k — the threshold below which you can operate without registering for VAT/GST.
- Zero-rated vs exempt are different. Zero-rated supplies (typically exports, basic food) charge 0% VAT but allow input-tax recovery. Exempt supplies (financial services, healthcare) charge no VAT but block input-tax recovery.
- US is the OECD outlier. No federal VAT; instead 45 states + DC operate sales tax at varying rates. Total burden ranges 0% (OR, MT, NH, DE) to ~10% (CA, IL, AR).
- Brazil consolidation pending. Brazil's ICMS+IPI+PIS+COFINS hybrid is being consolidated into IBS+CBS by 2027 — major simplification expected.
See also: Top PIT matrix · Glossary: VAT · Glossary: GST.