WORLD WIDE GST, VAT, SALES TAX RATE

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WORLD WIDE GST, VAT, SALES TAX RATE

				By: Mr. M. GOVINDARAJAN
				September 21, 2016
All Articles by: Mr. M. GOVINDARAJAN View Profile

Contents

In India, we are entering into GST regime from the existing indirect tax regime which is a major change in the taxation area. The Constitution has been amended authorizing the Central Government and State Government to levy GST, IGST. The Hon’ble President India has also notified the GST Council which began its functioning for the smooth adoption of GST which is expected with effect from 01.04.2017. The new tax rates are to be determined by the Council.

EYGM Limited has brought a book entitled WORLDWISE GST, VAT, SALES TAX GUIDE, 2016 (as on 01.01.2016). This book describes the indirect tax systems in 115 countries including India. For each country the book gives –

At a glance, what are the basic features of the major indirect tax in this country?
What is the scope and who is taxable?
What are the rates and how has the country defines the time of supply?
When can taxpayers recover VAT they have paid on inputs?
What are the rules on filing, payment and penalties?

In this article some information of indirect tax system of each 115 countries, excluding India on the following-

Nomenclature of Tax;
The time of introduction of tax;
Threshold limit for this tax;
Rate of tax.

The name of Tax is called mostly as VAT. Some countries adopted different names to this tax. More or less all countries are having 0% tax. Threshold registration is also fixed in Distance selling intra community acquisitions in some countries. The following table will give an overall view of rate structure in the world in respect of indirect taxation and threshold limit.

Sl. No.	Name of the Country	Name of Tax	Introduced on	Threshold limit	Rate
1	Albania	VAT	27.04.1995	ALL 5 million	20%
2	Argentina	VAT	January 1977	Goods – ARS 600000; Services – ARS 400000	Standard - 21% Reduced-10.5 Others-27%
3	Armenia	VAT	01.07.1993	AMD 115000000 for calendar year	20%
4	Aruba	Revenue Tax	01.01.2015	-	RT rates – 1.5% HT Rates – 1%
5	Australia	GST	01.07.2000	AUD – 75000 AUD – 150000 for non profit bodies	10%
6	Austria	VAT	01.01.1973	EUR 30000	Standard – 19%, 20% Reduced – 10%, 13%
7	Azerbaijan	VAT	01.01.1992	AZN 200000 for a period 12 consecutive months	18%
8	Bahamas	VAT	01.01.2015	BSD 100000	7.5%
9	Barbados	VAT	01.01.19974	BBD200000	Standard -17.5%; Reduced – 7.5%
10	Belarus	VAT	19.12.1991	No	Standard – 20%; Reduced-10%
11	Belgium	VAT	01.01.1971	No	Standard -21% Reduced -6%,12%
12	Bolivia	VAT	July 1986	No	13%-nominal rate; 14.99% - effective rate
13	BES Islands (Bonaire, Sint, Eustatius and Saba)	GET – General Expenditure Tax	01.01.2011	No	Bonaire - Service-6%; Goods-8%; import -8%; others-25%,7%,0% Sint, Eustatius and Saba- Service – 4; goods – 6%; import -6%; others-5%,10%, 18%,22%,30%
14	Bostwana	VAT	01.07.2002	BWP 1million	12%
15	Brazil	Multiple taxes
16	Bulgaria	VAT	01.04.1994	BGN50000	Standard– 20% Reduced-9%
17	Canada	GST HST	01.01.1991 01.04.1997	CAD 30000	GST – 5%; HST – 9.95% to 15%
18	Chile	VAT	31.12.1974	No	19%
19	China	VAT	01.01.1994	Monthly turnover CNY 5000 to CNY 20000	Standard-17%; Reduced-3%, 13%
20	Colombia	VAT	29.12.1983	USD43000	Standard-16%; Reduced-5%
21	Coasta Rica	VAT	08.11.1982	No	13%; Reduced – 5%, 10%
22	Croatia	VAT	01.01.1998	HRK230000	Standard – 25%; Reduced-13% and 5%
23	Curacao	Turnover tax	01.03.1999	No	Standard-6%; other-9% & 7%
24	Cyprus	VAT	01.07.1992	Euro15,600	Standard – 19%; Other – 5% or 9%
25	Czech Republic	VAT	01.01.1993	CZK 1 million	Standard – 21%; Reduced – 15%, 10%
26	Denmark	VAT	03.07.1967	DBK50,000	25%
27	Dominican Public	Tax on the transfer of industrialized Goods and Services	May 1992	None	18%, 13%
28	Ecuador	VAT	31.12.1981	None	12%
29	Egypt	General Sales Tax (replacement by VAT under consideration)	03.05.1991	EGP54000 EGP150000	10%; other – 1.2% to 45%
30	El Salvador	VAT	01.07.1992	USD5714.29	13%
31	Estonia	VAT	01.01.1991	EUR16000	Standard-20%; Reduced- 9%
32	European Union		01.01.1993
33	Finland	VAT	01.06.1994	EUR10000	Standard – 24; reduced-10% & 14%
34	France	VAT	10.04.1954	None	Standard – 20%; Reduced-2.1%, 5.5%,10%
35	Georgia	VAT	24.12.1993	GEL100000	Standard-18%;Reduced- 0.54%
36	Germany	VAT	01.01.1968	None	Standard – 19%; Reduced-7%
37	Ghana	VAT	18.03.1998	GHS200000	Standard – 15%
38	Greece	VAT	01.01.1987	None	Standard – 23%; Reduced-6%, 13%
39	Guatemala	VAT	01.07.1992	No	Standard-12%; Reduced -5%
40	Honduras	VAT	01.01.1964	No	Standard-15%;Other -18%
41	Hungary	VAT	01.01.1998	No	Standard-27%; Reduced-5%, 18%
42	Iceland	VAT	01.01.1990	ISK1000000	Standrad-24%; Reduced-11%
43	Indonesia	VAT	01.01.1984	IDR4.8 billion	10%
44	Ireland, Republic of	VAT	01.11.1972	Services-EUR37500 Goods-EUR70000	Standard-23%; Reduced -9% and 13.5%
45	Isle of Man	VAT	01.04.1973	GBP82000	Standard-20%; Reduced-5%
46	Israel	VAT	01.07.1976	ILS100000	17%
47	Italy	VAT	01.01.1973	No	Standard-22%; Reduced-4%,5%,10%
48	Japan	Consumption tax	01.04.1989	JPY10million	8%
49	Jersey, Channel Islands	GST	06.05.2008	GBP300000	5%
50	Jordan	GST	June1994	Goods-JOD50000 Services-JOD30000	Standard-16%; Reduced-4%
51	Kazakhstan	VAT	24.12.1991	USD235667	12%
52	Kenya	VAT	01.09.1990	KES5 million	16%
53	Korea	VAT	01.07.1977	No	10%
54	Kosovo	VAT	31.05.2001	EUR30000	Standard – 18%; Reduced-8%
55	Latvia	VAT	01.05.1995	EUR50000	Standard – 21%; Reduced-12%
56	Lebanon	VAT	01.02.2002	LBP150million in any four consecutive quarters	10%
57	Lithuania	VAT	01.05.1994	EUR60000	Standard-21%; Reduced-5%,9%
58	Luxemburg	VAT	05.08.1969	EUR112000	Standard-17%; Reduced-3%,8% or 14%
59	Macedonia	VAT	01.04.2000	MKD1 million	Standard-18%; Reduced-5%
60	Madagascar	VAT	1962	MGA200000000	20%
61	Malaysia	GST	01.04.2015	MYR500000	6%
62	Maldives	GST TGST(Tourism GST)	02.10.2011	GST-MVR1000000 TGST-No	GST-6% TGST-12%
63	Malta	VAT	01.01.1999	No	Standard-18%; Reduced-5% & 7%
64	Mauritius	VAT	07.09.1998	MUR 10million	15%
65	Mexico	VAT	01.01.1980	No	16%
66	Moldova	VAT	01.07.1998	MDL600000	Standard-20%; Reduced-8%
67	Mongolia	VAT	01.07.1998	MNT 50 million; Voluntary-MNT10 million	10%
68	Morocco	VAT	01.01.1986	No	Standard-20%; Reduced-7%,10% & 14%
69	Myanmar	Commercial tax	31.03.1990	MMK20000000	Goods – 5% - 120%; Services-5%
70	Namibia	VAT	27.11.2000	NAD500000	15%
71	Netherlands	VAT	01.01.1969	No	Standard-21%; Reduced-6%
72	New Zealand	GST	01.10.1986	NZD60000	15%
73	Nicaragua	VAT	06.05.2003	No	15%
74	Nigeria	VAT	24.08.1993	No	5%
75	Norway	VAT	01.01.1970	NOK50000	Standard-25%; Reduced-10% & 15%
76	Pakistan	Sales tax	01.11.1990	PKR5million or utility bills exceed PKR800000	Goods-17%; Services-16%, 15% & 14%; Others-24%,19.5%18.5%, 18%
77	Panama	VAT	22.12.1976	USD360000	Standard-7%; Other-10%, 15%
78	Papua New Guinea	GST	01.01.2004	PGK250000	10%
79	Paraguay	VAT	01.07.1992	No	Standard-10%;Reduced-5%
80	Peru	VAT	01.08.1991	No	18%
81	Philippines	VAT	01.01.1988	PHP1919500	12%
82	Poland	VAT	05.07.1993	PLN150000	Standard-23%; Reduced-5%,8%
83	Portugal	VAT	01.01.1986	No	Standard-23%; Intermediate-16% Reduced-6%
84	Pureto Rico	Sales and use tax	Nov2006	No	Standard rate-10.5%;Municipal rate-1%; special rate-4%
85	Romania	VAT	01.07.1993	EUR65000	Standard-20%; Reduced-9%, 5%
86	Russia Federation	VAT	06.12.1991	No	Standard-18%; Reduced-10%
87	Rwanda	VAT	01.01.2001	RWF12million	18%
88	Saint Lucia	VAT	01.10.2012	XCD400000(w.e.f. 14.03.2016)	Standard-15%;Reduced-9.5%
89	Serbia	VAT	01.01.2005	RSD8million	Standard-20%; Reduced-10%
90	Seychelles	VAT	01.01.2013	SCR 2million	15%
91	Singapore	GST	01.04.1994	SGD 1 million	7%
92	Sint Maarten	Revenue Tax	01.01.1997	No	5%
93	Slovak Republic	VAT	01.01.1993	EUR49790	Standard – 20%; Reduced-10%
94	Slovenia	VAT	01.07.1999	EUR50000	Standard-22%; Reduced-9.5%
95	South Africa	VAT	30.09.1991	ZAR50000	14%
96	Spain	VAT	01.01.1986	No	Standard – 21%; Reduced-4%,10%
97	Suriname	Turnover tax	30.12.1997	No	Service-8%;goods-10%;import-10%;others25%
98	Sweden	VAT	01.01.1969	No	Standard-25%; Reduced-6% & 12%
99	Switzerland	VAT	01.01.1995	CHN100000	Standard-8%; Reduced-2.5% and 3.8%
100	Taiwan	Business tax	13.06.1931	No	VAT-5%; Gross business receipt tax-0.1% to 25%
101	Tanzania	VAT	01.07.2015	TZS100 million	18%
102	Thailand	VAT	01.01.1992	THB1800000	7%
103	Trinidad and Tobago	VAT	01.01.1990	TTD500000	12.5%
104	Tunisia	VAT	02.06.1988	TND100000	Standard-18%; Reduced-6% and 12%
105	Turkey	VAT	02.11.1984	No	Standard-18%; Reduced-1% and 8%
106	Uganda	VAT	01.07.1996	UGX150million	18%
107	Ukraine	VAT	01.01.1992	UAH1000000	Standard-20%; Reduced-7%
108	United Kingdom	VAT	01.041973	GBP82000	Standard-20%; Reduced-5%
109	United States	No uniformity among states
110	Uruguay	VAT	29.12.1972	No	Standard-22%; Reduced-10%
111	Venezuela	VAT	01.10.1993	No	Standard-12%; Other-maximum16.5%
112	Vietnam	VAT	01.01.1999	No	Standard 10%; Reduced-5%
113	Zambia	VAT	July 1995	ZMW80000	16%
114	Zimbabwe	VAT	01.01.2004	USD60000	15%

Source: Worldwide VAT, GST, Sales Tax Guide, 2016.

By: Mr. M. GOVINDARAJAN - September 21, 2016

Discussions to this article

nice compilation sir. thanks.

Aruba country is having lowest tax rate of 1% and 1.5% as per table in the article. How this country would be meeting its expenditure with such lower tax rate. Any input sir.

By: Ganeshan Kalyani
Dated: September 22, 2016

Dear Ganeshan,

Aruba don't have two curses like India unfortunately have, namely:-

Neighbour like Pakistan (due to this taxpayers' money goes in fighting against terrorism instead of on development work)
Corruption (Our tax money is being enjoyed by some corrupt persons in our country)

This is an irony and these are the main reasons why GST rate will be in the range of between 18% to 25%. However, for defending our country from enemies, we can bear this cost but certainly not for the corruption. T & C (Terrorism and Corruption can be ended, by our Great Army and by our Countrymen, respectively).

Jai Hind Long Live Our Country.

YAGAY and SUN