Lowest VAT / GST countries
The lowest standard VAT/GST rate among countries that levy one is Andorra at 4.5%, ahead of Canada (5%). Separately, 9 jurisdictions in GlobalTaxBook have no VAT/GST at all — including the United States, which relies on state sales taxes instead. Standard rates only; reduced rates often apply to essentials. Not tax advice.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
VAT/GST rates ranked, lowest first
| # | Country | Standard VAT/GST | Top income tax | Region |
|---|---|---|---|---|
| 1 | Andorra | 4.5% | 10% | Europe |
| 2 | Canada | 5% | 33% | North America |
| 3 | Jersey | 5% | 20% | Europe |
| 4 | United Arab Emirates | 5% | 0% (no personal income tax) | Middle East |
| 5 | Oman | 5% | 5% | Middle East |
| 6 | Taiwan | 5% | 40% | Asia |
| 7 | Thailand | 7% | 35% | Asia |
| 8 | Panama | 7% | 25% | North America |
| 9 | Nigeria | 7.5% | 25% | Africa |
| 10 | Switzerland | 8.1% | 11.5% | Europe |
| 11 | Liechtenstein | 8.1% | 22.4% | Europe |
| 12 | Singapore | 9% | 24% | Asia |
| 13 | Bahrain | 10% | 0% (no personal income tax) | Middle East |
| 14 | Japan | 10% | 45% | Asia |
| 15 | South Korea | 10% | 45% | Asia |
| 16 | Malaysia | 10% | 30% | Asia |
| 17 | Vietnam | 10% | 35% | Asia |
| 18 | Australia | 10% | 45% | Oceania |
| 19 | Paraguay | 10% | 10% | South America |
| 20 | Bahamas | 10% | 0% (no personal income tax) | Caribbean |
| 21 | Lebanon | 11% | 25% | Middle East |
| 22 | Puerto Rico | 11.5% | 33% | Caribbean |
| 23 | Indonesia | 12% | 35% | Asia |
| 24 | Philippines | 12% | 35% | Asia |
| 25 | China | 13% | 45% | Asia |
| 26 | Costa Rica | 13% | 25% | North America |
| 27 | Egypt | 14% | 27.5% | Africa |
| 28 | Saudi Arabia | 15% | 0% (no personal income tax) | Middle East |
| 29 | Bangladesh | 15% | 30% | Asia |
| 30 | New Zealand | 15% | 39% | Oceania |
| 31 | South Africa | 15% | 45% | Africa |
| 32 | Ghana | 15% | 35% | Africa |
| 33 | Mauritius | 15% | 20% | Africa |
| 34 | Mexico | 16% | 35% | North America |
| 35 | Jordan | 16% | 30% | Middle East |
| 36 | Kazakhstan | 16% | 15% | Asia |
| 37 | Kenya | 16% | 35% | Africa |
| 38 | Luxembourg | 17% | 42% | Europe |
| 39 | Brazil | 17% | 27.5% | South America |
| 40 | Barbados | 17.5% | 28.5% | Caribbean |
| 41 | Malta | 18% | 35% | Europe |
| 42 | Israel | 18% | 50% | Middle East |
| 43 | India | 18% | 42.744% | Asia |
| 44 | Pakistan | 18% | 45% | Asia |
| 45 | Georgia | 18% | 20% | Asia |
| 46 | Tanzania | 18% | 30% | Africa |
| 47 | Peru | 18% | 30% | South America |
| 48 | Germany | 19% | 45% | Europe |
| 49 | Cyprus | 19% | 35% | Europe |
| 50 | Chile | 19% | 40% | South America |
| 51 | Colombia | 19% | 39% | South America |
| 52 | United Kingdom | 20% | 45% | Europe |
| 53 | France | 20% | 45% | Europe |
| 54 | Austria | 20% | 55% | Europe |
| 55 | Bulgaria | 20% | 10% | Europe |
| 56 | Serbia | 20% | 20% | Europe |
| 57 | Ukraine | 20% | 18% | Europe |
| 58 | Turkey | 20% | 40% | Europe |
| 59 | Russia | 20% | 22% | Europe |
| 60 | Monaco | 20% | 0% (no personal income tax) | Europe |
| 61 | Isle of Man | 20% | 21% | Europe |
| 62 | Armenia | 20% | 20% | Asia |
| 63 | Morocco | 20% | 37% | Africa |
| 64 | Spain | 21% | 47% | Europe |
| 65 | Netherlands | 21% | 49.5% | Europe |
| 66 | Belgium | 21% | 50% | Europe |
| 67 | Czech Republic | 21% | 23% | Europe |
| 68 | Latvia | 21% | 36% | Europe |
| 69 | Lithuania | 21% | 32% | Europe |
| 70 | Romania | 21% | 10% | Europe |
| 71 | Argentina | 21% | 35% | South America |
| 72 | Italy | 22% | 43% | Europe |
| 73 | Slovenia | 22% | 50% | Europe |
| 74 | Uruguay | 22% | 36% | South America |
| 75 | Ireland | 23% | 40% | Europe |
| 76 | Portugal | 23% | 48% | Europe |
| 77 | Poland | 23% | 32% | Europe |
| 78 | Slovakia | 23% | 35% | Europe |
| 79 | Iceland | 24% | 31.35% | Europe |
| 80 | Greece | 24% | 44% | Europe |
| 81 | Estonia | 24% | 22% | Europe |
| 82 | Sweden | 25% | 52% | Europe |
| 83 | Norway | 25% | 39.7% | Europe |
| 84 | Denmark | 25% | 57% | Europe |
| 85 | Croatia | 25% | 36% | Europe |
| 86 | Finland | 25.5% | 52% | Europe |
| 87 | Hungary | 27% | 15% | Europe |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Countries with no VAT/GST
Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Guernsey, Hong Kong, Kuwait, Qatar, United States. These rely on sales taxes, customs duties or other levies instead of a broad value-added tax.
Frequently asked questions
Which country has the lowest VAT?
Among countries that have a VAT/GST, Andorra has the lowest standard rate at 4.5%, followed by Canada (5%). Separately, 9 jurisdictions in this dataset have no VAT/GST at all — including Bermuda, British Virgin Islands, Cayman Islands, Gibraltar and the United States (which uses state sales taxes instead).
Does the US have VAT?
No. The United States has no national VAT. Instead, individual states and cities levy sales taxes, typically 0%–10% combined, charged at the point of sale rather than at each stage of production like VAT.
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Last updated: 2026-06-20