The UK standard VAT rate is 20%. Many countries use a similar tax, sometimes called VAT and sometimes called GST, which stands for goods and services tax. Rates vary widely around the world.
How the UK compares
[ Chart: Standard VAT or GST rate by country ]
Type: bar chart. Data: United Kingdom 20, Germany 19, France 20, Ireland 23, Spain 21, Italy 22, Netherlands 21, Australia 10, Canada 5, Japan 10.
Alt text: Bar chart comparing the standard VAT or GST rate across several countries.
Caption: The UK rate of 20% sits in the middle of the pack.
| Country | Standard rate | Name |
|---|---|---|
| United Kingdom | 20% | VAT |
| Germany | 19% | VAT |
| France | 20% | VAT |
| Ireland | 23% | VAT |
| Spain | 21% | VAT |
| Italy | 22% | VAT |
| Netherlands | 21% | VAT |
| Australia | 10% | GST |
| Canada | 5% | GST |
| Japan | 10% | Consumption tax |
Rates can change, so check the local tax authority for the current figure in any country.
VAT and GST are close cousins
VAT and GST work in a similar way. Both add a tax at each step of the supply chain, and both let registered businesses reclaim the tax on their costs. The main difference is the name and some local rules. Countries such as Australia, Canada and Singapore use the term GST, while most of Europe uses VAT.
The United States is different
The United States does not have VAT or a national GST. Instead it uses sales tax, set by each state and sometimes each city. Sales tax is added only at the final sale to the customer, rather than at each step of the chain.
Selling across borders
If you sell goods or services abroad, different rules can apply. Exports of goods from the UK are often zero rated. Digital services sold to customers in the European Union may need VAT at the customer’s local rate through a scheme called the One Stop Shop. The rules depend on what you sell and where, so check before you trade.
Frequently asked questions
What is the UK VAT rate compared to other countries? The UK standard rate is 20%, which is around the middle for Europe. Some countries are higher, such as Ireland at 23%, and some are lower, such as Germany at 19%.
Is VAT the same as GST? They work in a similar way. GST stands for goods and services tax and is the name used in countries such as Australia and Canada. Most of Europe uses the term VAT.
Does the United States have VAT? No. The United States uses sales tax, set by each state and sometimes each city, added only at the final sale.
Which country has the highest VAT? Among larger economies, Hungary has one of the highest standard rates in Europe. Rates change, so check the local authority.
Do I charge UK VAT on exports? Exports of goods from the UK are often zero rated, but the rules depend on where the goods go and what you sell.