VAT Rates by Country 2026
Comprehensive and up-to-date guide to VAT and GST rates across 40+ countries for international trade
Key Points About VAT on Imports
Destination-Based Taxation
VAT is charged at the destination country's rate, not the origin country.
Calculation Base
VAT = (Product Value + Customs Duty + Freight + Insurance) × VAT Rate
Business Registration
VAT-registered businesses can often reclaim input VAT on imports.
Product Categories
Some products qualify for reduced rates or exemptions (food, medicine, books).
📍 GCC
Saudi Arabia
15%Currency: SAR
VAT System: Active
Union: GCC
GCC Customs Union member - zero duty on intra-GCC trade
UAE
5%Currency: AED
VAT System: Active
Union: GCC
Major transshipment hub, India-UAE CEPA agreement active
Qatar
0%Currency: QAR
Status: No VAT
Union: GCC
No VAT implemented yet
Kuwait
0%Currency: KWD
Status: No VAT
Union: GCC
VAT pending implementation
Bahrain
10%Currency: BHD
VAT System: Active
Union: GCC
FTA with United States
Oman
5%Currency: OMR
VAT System: Active
Union: GCC
Major transshipment hub at Salalah, FTA with USA
📍 East Asia
China
13%Currency: CNY
VAT System: Active
World's largest exporter, RCEP member
Japan
10%Currency: JPY
VAT System: Active
CPTPP founding member, low average tariffs
South Korea
10%Currency: KRW
VAT System: Active
Extensive FTA network
📍 South Asia
India
18%Currency: INR
VAT System: Active
India-UAE CEPA with zero duty on many products
Pakistan
17%Currency: PKR
VAT System: Active
CPEC corridor with China
Bangladesh
15%Currency: BDT
VAT System: Active
Major textile exporter
📍 Southeast Asia
Singapore
8%Currency: SGD
VAT System: Active
Union: ASEAN
Free port, world's busiest transshipment hub
Malaysia
0%Currency: MYR
Status: No VAT
Union: ASEAN
SST instead of VAT
Thailand
7%Currency: THB
VAT System: Active
Union: ASEAN
ASEAN hub
Vietnam
10%Currency: VND
VAT System: Active
Union: ASEAN
CPTPP and EVFTA member
📍 Europe
Germany
19%Currency: EUR
VAT System: Active
Union: EU
EU Customs Union - zero duty within EU
United Kingdom
20%Currency: GBP
VAT System: Active
Post-Brexit independent trade policy
Netherlands
21%Currency: EUR
VAT System: Active
Union: EU
Rotterdam is Europe's largest port
France
20%Currency: EUR
VAT System: Active
Union: EU
EU member state
📍 North America
United States
0%Currency: USD
Status: No VAT
Union: USMCA
Sales tax instead of VAT, varies by state
Canada
5%Currency: CAD
VAT System: Active
Union: USMCA
GST 5% federal + provincial sales tax
Mexico
16%Currency: MXN
VAT System: Active
Union: USMCA
USMCA member, extensive FTA network
📍 Oceania
Australia
10%Currency: AUD
VAT System: Active
CPTPP member, extensive FTA network
📍 South America
Brazil
17%Currency: BRL
VAT System: Active
Union: MERCOSUR
High import duties, MERCOSUR member
📍 Africa
South Africa
15%Currency: ZAR
VAT System: Active
Major African trade hub
📍 Middle East
Egypt
14%Currency: EGP
VAT System: Active
Suez Canal access
Turkey
18%Currency: TRY
VAT System: Active
Union: EU
EU Customs Union for industrial goods
Special Cases & Exemptions
🆓 Free Trade Zones
Many countries offer free zones where imports may be exempt from VAT until goods enter the domestic market.
- • UAE: Jebel Ali, DIFC, ADGM
- • Saudi Arabia: KAEC, Jazan
- • Qatar: Qatar Financial Centre
- • Oman: Sohar, Salalah
🎯 Reduced Rates
Certain essential goods may qualify for reduced VAT rates or exemptions.
- • Basic food items: Often 0% or reduced
- • Medical supplies: Usually 0% or 5%
- • Books & education: Often reduced rate
- • Renewable energy equipment: May be exempt
Recent Changes 2025-2026
Saudi Arabia VAT Rate Maintained
Saudi Arabia maintained its 15% VAT rate through 2025-2026, with no changes announced.
Updated: January 2026Qatar VAT Implementation Status
Qatar continues to evaluate VAT implementation timeline, with no confirmed date yet.
Status: Under ReviewKuwait VAT Preparation
Kuwait making progress on VAT system preparation, expected implementation timeline still TBD.
Status: In Preparation