GST and VAT Around the World: Rates and Quirks

Same idea, different implementation. Sales tax varies from 0% to 27% depending where you are. Knowing the local rate keeps invoices clean.

If you have ever stared at a number on a form and wondered where it came from, you are not alone. Same idea, different implementation. Sales tax varies from 0% to 27% depending where you are. Knowing the local rate keeps invoices clean.

Hungary 27%

Highest standard VAT rate in the world. Many EU exceptions for basics.

UK 20% standard

Reduced 5% on energy, zero on most food and children's clothing.

Australia GST 10%

Mostly flat. Exemptions on most basic food.

US has no VAT

State sales taxes (0–9.5%) instead. Often hidden from sticker prices.

UAE 5%

Introduced 2018. Among the lowest globally.

Pakistan 17% standard

GST on most goods; provincial sales taxes on services.

Pro tips

  • Always confirm VAT inclusion on international invoices.
  • Business B2B can usually reclaim VAT — keep clean records.

Frequently asked questions

Why is US sales tax so complicated? Set by state + county + city. Over 11,000 different jurisdictions.

Does Amazon collect tax? In most jurisdictions now, yes. Pre-2018 was a wild west.

Bookmark the calculator linked above — you will need it more often than you think.

Related