Global VAT and GST Rates in 2024
A comprehensive overview of VAT/GST rates by country, helping you stay informed on global tax rates.
Understanding VAT and GST Rates Across the World in 2024
**Value-Added Tax (VAT)** and **Goods and Services Tax (GST)** are forms of indirect taxes applied on goods and services at various stages of production or distribution. While VAT is widely implemented across the world, some countries prefer GST as a similar form of consumption tax. This blog explores VAT and GST rates by country and offers a comprehensive list of standard and reduced rates as of 2024.
What Are VAT and GST?
VAT and GST are both taxes levied on the value added to goods and services throughout the supply chain, from production to sale. While VAT is commonly applied in Europe and parts of Asia, GST is widely used in countries like Canada, Australia, and New Zealand.
The fundamental difference between VAT and GST is minimal; both taxes are collected at various stages and are typically paid by the end consumer. Businesses can claim back the VAT/GST they paid, resulting in the tax being passed down to the final buyer.
How is VAT Calculated?
VAT is calculated as a percentage of the selling price. For instance, if a product costs $100 and the VAT rate is 10%, the final price will be $110. The formula is:
VAT = Amount * VAT Rate
Example: For a $500 item with a 5% VAT, the VAT is $25, bringing the total to $525.
Country-Wise VAT and GST Rates in 2024
Below is an updated list of VAT/GST rates for countries around the world. Each country has its own standard rate, and some have reduced rates for essential goods, services, or specific sectors. Reduced rates often apply to items like food, healthcare, and education to support affordability.
| Country | Standard VAT/GST Rate | Reduced Rates |
|---|---|---|
| Algeria | 19% | 9% (for certain industries) |
| Argentina | 21% | 10.5% |
| Australia | 10% (GST) | N/A |
| Brazil | 17-18% (varies by state) | 7% |
| Canada | 5% (GST) | N/A |
| China | 13% | 9%, 6% for some items |
| Denmark | 25% | N/A |
| France | 20% | 10%, 5.5% |
| Germany | 19% | 7% |
| India | 18% (GST) | 12%, 5%, 0% for essentials |
| Italy | 22% | 10%, 5% |
| Japan | 10% | 8% (essentials) |
| Mexico | 16% | N/A |
| Netherlands | 21% | 9% |
| South Africa | 15% | N/A |
| Sweden | 25% | 12%, 6% |
| United Kingdom | 20% | 5% |
| United States | Varies by state | Varies by state |
| Afghanistan | 10% | N/A |
| Austria | 20% | 13%, 10% |
| Belgium | 21% | 12%, 6% |
| Chile | 19% | N/A |
| Colombia | 19% | 5% |
| Croatia | 25% | 13%, 5% |
| Czech Republic | 21% | 15%, 10% |
| Egypt | 14% | 5% |
| Finland | 24% | 14%, 10% |
| Greece | 24% | 13%, 6% |
| Hungary | 27% | 18%, 5% |
| Iceland | 24% | 11% |
| Ireland | 23% | 13.5%, 9% |
| Luxembourg | 17% | 8%, 3% |
| Malaysia | 6% | N/A |
| Norway | 25% | 15%, 12% |
| Poland | 23% | 8%, 5% |
| Portugal | 23% | 13%, 6% |
| Russia | 20% | 10% |
| Saudi Arabia | 15% | N/A |
| Singapore | 8% | N/A |
| South Korea | 10% | N/A |
| Spain | 21% | 10%, 4% |
| Switzerland | 7.7% | 3.7%, 2.5% |
| Thailand | 7% | N/A |
| Turkey | 18% | 8%, 1% |
| Ukraine | 20% | 7% |
| United Arab Emirates | 5% | N/A |
| Uruguay | 22% | 10% |
| Vietnam | 10% | 5% |
| Argentina | 21% | 10.5% |
| Bangladesh | 15% | N/A |
| Bulgaria | 20% | 9% |
| Denmark | 25% | N/A |
| Estonia | 20% | 9% |
| Indonesia | 11% | N/A |
| Israel | 17% | N/A |
| Italy | 22% | 10%, 5%, 4% |
| Jamaica | 15% | 10% |
| Kenya | 16% | N/A |
| New Zealand | 15% | N/A |
| Pakistan | 17% | N/A |
| Philippines | 12% | N/A |
| Romania | 19% | 9%, 5% |
| South Africa | 15% | N/A |
| Sweden | 25% | 12%, 6% |
| United Kingdom | 20% | 5% |
| Zimbabwe | 14.5% | N/A |
For a comprehensive list of all countries and their respective VAT/GST rates, refer to our updated resources.
Benefits of VAT and GST for Consumers and Economies
VAT and GST contribute significantly to national revenue, enabling governments to fund essential public services like healthcare, infrastructure, and education. By implementing reduced rates on essential goods, governments can make basic necessities more affordable, easing the financial burden on lower-income households.
Conclusion
Understanding VAT and GST rates by country is essential for businesses and consumers alike. These taxes are integral to economic stability and development, allowing governments to provide public services while maintaining a balanced tax system. We encourage readers to stay informed of updates and consult our resources for the latest information on VAT and GST rates.
