VAT (or GST) is the world’s most common consumption tax and a major source of government revenue. Here’s how standard rates compare in 2026.
Not tax advice. These are standard rates; reduced rates apply to many goods, and registration rules differ by country.
Standard VAT/GST rates: high to low (selection)
| Country | Standard VAT/GST |
|---|---|
| Hungary | 27% |
| Croatia · Denmark · Sweden · Norway | 25% |
| Finland | 25.5% |
| Greece · Iceland | 24% |
| Spain · Netherlands · France | 21% / 21% / 20% |
| United Kingdom · Germany | 20% / 19% |
| Singapore · Japan · Australia | 9% / 10% / 10% |
| United Arab Emirates | 5% |
| United States | None (state sales tax) |
See the full lowest VAT and highest VAT rankings.
Why Europe’s rates are so high
VAT is the European Union’s flagship consumption tax. EU rules set a minimum standard rate of 15%, and most members land between 19% and 27%. The revenue funds extensive welfare systems and partly offsets generous income-tax thresholds. Hungary tops the world at 27% while running a flat 15% income tax — a high-consumption, low-income-tax mix.
The low-VAT and no-VAT world
The Gulf states only introduced VAT recently and keep it low (5% in the UAE). Several jurisdictions — including the Cayman Islands, Hong Kong and Gibraltar — have no VAT at all. The United States is the largest economy with no national VAT, relying on state and local sales taxes instead.
VAT vs sales tax
VAT is collected at every stage of production and distribution, with businesses reclaiming input VAT, so only the final consumer truly pays. US-style sales tax is charged once at the retail sale. VAT is harder to evade and raises more revenue, which is why most of the world uses it.
Sources
Rates from PwC Worldwide Tax Summaries, cross-checked with the OECD and Tax Foundation. Standard rates as of June 2026. See our methodology.