The short answer
Hungary has the highest standard VAT rate, at 27%. Among the 60 countries covered here, the lowest standard rate is 5%, in Canada and the United Arab Emirates. A few jurisdictions, including Hong Kong and the Gulf states of Kuwait and Qatar, charge no VAT at all.
Standard rates are the fairest comparison, but they do not tell the whole story: reduced rates, exemptions and thresholds change what people actually pay. Brazil is left out of the rankings below because it has no single national VAT, and Canada's rate is the federal GST only.
15 Highest VAT Rates in the World
Standard rates, 2026
| # | Country | Standard rate | Region |
|---|---|---|---|
| 1 | 🇭🇺 Hungary | 27% | EU |
| 2 | 🇫🇮 Finland | 25.5% | EU |
| 3 | 🇭🇷 Croatia | 25% | EU |
| 4 | 🇩🇰 Denmark | 25% | EU |
| 5 | 🇳🇴 Norway | 25% | Europe |
| 6 | 🇸🇪 Sweden | 25% | EU |
| 7 | 🇪🇪 Estonia | 24% | EU |
| 8 | 🇬🇷 Greece | 24% | EU |
| 9 | 🇮🇸 Iceland | 24% | Europe |
| 10 | 🇮🇪 Ireland | 23% | EU |
| 11 | 🇵🇱 Poland | 23% | EU |
| 12 | 🇵🇹 Portugal | 23% | EU |
| 13 | 🇸🇰 Slovakia | 23% | EU |
| 14 | 🇮🇹 Italy | 22% | EU |
| 15 | 🇷🇺 Russia | 22% | Europe |
15 Lowest VAT Rates in the World
Standard rates among countries that charge VAT or GST
| # | Country | Standard rate | Region |
|---|---|---|---|
| 1 | 🇨🇦 Canada | 5% | Americas |
| 2 | 🇦🇪 United Arab Emirates | 5% | Middle East |
| 3 | 🇹🇭 Thailand | 7% | Asia-Pacific |
| 4 | 🇳🇬 Nigeria | 7.5% | Africa |
| 5 | 🇨🇭 Switzerland | 8.1% | Europe |
| 6 | 🇸🇬 Singapore | 9% | Asia-Pacific |
| 7 | 🇦🇺 Australia | 10% | Asia-Pacific |
| 8 | 🇯🇵 Japan | 10% | Asia-Pacific |
| 9 | 🇲🇾 Malaysia | 10% | Asia-Pacific |
| 10 | 🇰🇷 South Korea | 10% | Asia-Pacific |
| 11 | 🇻🇳 Vietnam | 10% | Asia-Pacific |
| 12 | 🇮🇩 Indonesia | 11% | Asia-Pacific |
| 13 | 🇵🇭 Philippines | 12% | Asia-Pacific |
| 14 | 🇨🇳 China | 13% | Asia-Pacific |
| 15 | 🇪🇬 Egypt | 14% | Africa |
Highest and Lowest VAT Rates in the EU
The 27 member states average 21.9%
EU law sets a minimum standard rate of 15% and no maximum, although no member state goes below 17%.
| Highest | Rate | Lowest | Rate |
|---|---|---|---|
| 🇭🇺 Hungary | 27% | 🇱🇺 Luxembourg | 17% |
| 🇫🇮 Finland | 25.5% | 🇲🇹 Malta | 18% |
| 🇸🇪 Sweden | 25% | 🇩🇪 Germany | 19% |
| 🇩🇰 Denmark | 25% | 🇨🇾 Cyprus | 19% |
| 🇭🇷 Croatia | 25% | 🇫🇷 France | 20% |
See every member state in VAT rates in Europe.
Average VAT Rate by Region
Simple averages of the countries on this site, not weighted by population or GDP
| Region | Countries | Average | Lowest | Highest |
|---|---|---|---|---|
| European Union | 27 | 21.9% | Luxembourg 17% | Hungary 27% |
| Europe outside the EU | 8 | 19.9% | Switzerland 8.1% | Norway 25% |
| Asia-Pacific | 12 | 11.2% | Thailand 7% | India 18% |
| Americas | 6 | 16.3% | Canada 5% | Argentina 21% |
| Middle East | 3 | 12.7% | United Arab Emirates 5% | Israel 18% |
| Africa | 3 | 12.2% | Nigeria 7.5% | South Africa 15% |
Europe has the highest rates by a clear margin, partly because EU membership sets a 15% floor. Rates in much of Asia and the Gulf are far lower. For every country, see the full VAT rates table.
Frequently Asked Questions
Which country has the highest VAT rate?
Hungary, at 27%, has the highest standard rate of the countries on this site, followed by Finland at 25.5%.
Which country has the lowest VAT rate?
Among the countries with full guides on this site, Canada and the United Arab Emirates have the lowest standard rate, at 5%. Canada's figure is the federal GST only, and most provinces add a further tax. Some jurisdictions charge no VAT at all: see countries with no VAT.
Which EU country has the lowest VAT rate?
Luxembourg, at 17%. EU law requires a standard rate of at least 15%.
Which EU country has the highest VAT rate?
Hungary, at 27%.
What is the average VAT rate in the EU?
The 27 EU standard rates average 21.9%.
Last reviewed on 31 October 2026.