TaxTMI 
TaxTMI 
TaxTMI 
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 |
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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 |
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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 |
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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.