Sales Tax (USA only)
A sales tax is calculated as a percentage of goods sold and is determined by the location where the sale took place. Sales taxes are administered by each State, County, and District(s) in the USA.
- Use TaxJar to find a sales tax by zip code.
Value-Added Tax (VAT)
A value-added tax (VAT) is a tax that is calculated based on the cost of the goods or service charged. This tax is administered by most countries and usually is targeted at imported items.
- Use Avalara to find the VAT .
| COUNTRY | VAT | SOURCE |
| USA | 0% (although, there is sales tax in most states) | N/A |
| Argentina | 21% | PWC |
| Australia | 10% | TransferWise |
| Bangladesh | 15% | nbr.gov.bd |
| Belgium | 21% | www.belgium.be |
| Brazil | Depends on the State. Average is 17% | KPMG |
| Bulgaria | 20% | www.tmf-group.com |
| Canada | 5% to 15% | www.worldwide-tax.com |
| Chile | 19% | home.kpmg |
| China | 13% | www.tradingeconomics.com |
| Colombia | 19% | Avalara |
| Dominican Republic | 18% | KPMG |
| Finland | 24% | Finland Ministry of Finance |
| France | 20% | www.tmf-group.com |
| Germany | 19% | www.tradingeconomics.com |
| Greece | 24% | www.tradingeconomics.com |
| Hong Kong | 0% | www.worldwide-tax.com |
| Hungary | 27% | Avalara |
| India | 12.5% to 15% | www.worldwide-tax.com |
| Ireland | 23% | Irish Tax and Customs |
| Israel | 17% | Israel Tax Authority |
| Italy | 22% | Ministry of Economy and Finance |
| Jamaica | 16.5% | www.taxsummaries.pwc.com |
| Kenya | 0% or 16% | www.bdo.ea.com |
| Malaysia | 6% | lawofficemalaysia.com |
| Mexico | 16% | Avalara |
| Morocco | 7%, 10%, 14%, or 20% (Standard is 20%) | KPMG |
| Netherlands | 0%, 9%, or 21% (Standard is 21%) | Government of Netherlands |
| New Zealand | 13% | www.world.tax-rates.org |
| Nigeria | 7.5% | Avalara |
| Norway | 25% | The Norwegian Tax Administration |
| Pakistan | 17% | taxsummaries.pwc.com |
| Panama | 7% (10% and 15% for alcohol and tobacco, respectively) | KPMG |
| Peru | 18% | Avalara |
| Philippines | 0% to 12% | Philippines Bureau of Internal Revenue |
| Poland | 23% | Polish Investment and Trade Agency |
| Portugal | 23% | Avalara |
| Puerto Rico (USA) | 0% | N/A |
| Russia | 10% or 20% (Updated from 18% in 2019) | Federal Tax Service of Russia |
| Saudi Arabia | 5% | General Authority of Zakat & Tax |
| Singapore | 7% | Inland Revenue Authority of Singapore |
| South Africa | 15% | South African Revenue Service |
| Spain | 21% | Spanish Tax Agency |
| Sri Lanka | 15% | Sri Lanka Inland Revenue |
| Sweden | 6%, 12%, and 25% (Standard is 25%) | Swedish Tax Agency |
| Switzerland | 7.7% | Swiss Federal Tax Administration |
| Thailand | 7% | Thailand Revenue Department |
| Ukraine | 20% | Avalara |
| United Kingdom | 20% | GOV.UK |
| Vietnam | 5% or 10% | Ministry of Justice |
| Zimbabwe | 14% | Zimbabwe Revenue Authority |
Are Services Taxed?
Services are taxed based on the service provider’s country. In most countries, services are taxed at the Value-Added Tax (VAT).
In the USA, only four (4) States charge taxes on general services:
- Hawaii – 4% (tax.hawaii.gov)
- New Mexico – 5% and will be 5.125% on July 21, 2021 ( www.avalara.com)
- South Dakota – 4.5% (dor.sd.gov)
- West Virginia – 6% (tax.wv.gov)