The indirect tax of choice – the rise of VAT internationally

Rather than list the countries that have a Value Added Tax (VAT) system, it would be much easier to list the handful of countries that don’t. The brainchild of German industrialist, Dr. Wilhelm von Siemens back in 1918 - it has since become the prevalent form of indirect taxation in over 150 countries. His idea was that it was a very efficient tax, as charged at every stage of the supply chain using businesses to act as tax collectors. VAT was first implemented in 1954 by Maurice Lauré in France with a new tax called "Taxe sur la valeur ajoutée" which literally translates as “Tax on the value added”. The rest is history, as countries across the globe introduced a VAT system over the next several decades. 

The UK introduced VAT back in 1973 as a prerequisite to joining the European Union (almost 50 years before Brexit). Every major economy outside the US now has a VAT system. However, many VAT systems have a different local name, for example it is often called Goods and Services Tax (GST) or a local variation.

VAT by another name - the local names for indirect tax regimes across the globe:

Country

VAT in local language(s)

Albania

TVSH

Andorra

IGI

Argentina

IVA

Angola

VAT

Armenia

AAH / ԱԱՀ

Australia

GST

Austria

MwSt / USt

Azerbaijan

ƏDV

Bahamas

VAT

Bahrain

VAT

Bangladesh

Musok

Barbados

VAT

Belarus

ПДВ

Belgium

BTW / TVA / MWSt

Bolivia

IVA

Bosnia and Herzegovina

PDV

Brazil

IPI / ICMS / ISS

Bulgaria

ДДС

Canada

GST / HST / PST / QST

Chile

IVA

China

增值税

Colombia

IVA

Costa Rica

GST

Croatia

PDV

Cyprus

ΦΠΑ

Czech Republic

DPH

Denmark

Moms

Dominican Republic

ITBIS

Ecuador

IVA

Egypt

VAT

El Salvador

IVA

Estonia

km

Ethiopia

VAT

Faroe Islands

MVG

Fiji

VAT

Finland

ALV / Moms

France

TVA

Gambia

VAT

Georgia

DGhG

Germany

MwSt. / Ust.

Ghana

VAT

Greece

ΦΠΑ

Guatemala

IVA

Guyana

VAT

Honduras

VAT

Hungary

ÁFA

Iceland

VSK

India

GST

Indonesia

PPN

Iran

VAT

Ireland

CBL / VAT

Israel

Ma'am

Italy

IVA

Japan

消費税)

Jersey

GST

Jordon

GST

Kazakhstan

ҚCҚ

Latvia

PVN

Kenya

VAT

Lebanon

TVA / VAT

Latvia

PVN

Liechtenstein

MWST

Lithuania

PVM

Luxembourg

TVA

Malaysia

SST / CJP

Maldives

GST

Malta

VAT

Mauritius

VAT

Mexico

IVA

Moldova

TVA

Monaco

TVA

Mongolia

VAT

Montenegro

PDV

Morocco

TVA

Namibia

VAT

Nepal

VAT

Netherlands

BTW

New Zealand

GST

North Macedonia

ДДВ / DDV

Nigeria

VAT

Norway

MVA / MOMS

Pakistan

GST

Oman

VAT

Palestine

VAT

Pakistan

Sales Tax

Panama

ITBMS

Paraguay

IVA

Peru

IGV/ IPM

Philippines

RVAT

Poland

PTU /VAT

Portugal

IVA

Romania

TVA

Russia

НДС  / NDS

Rwanda

VAT

Rwanda

VAT

Saudi Arabia

ضريبة القيمة المضافة

Serbia

ПДВ / PDV

Singapore

GST

Slovak Republic

DPH

Slovenia

DDV

South Africa

VAT / BTW

South Korea

부가가치세 / 附加價値稅)

Spain

IVA

Sri Lanka

VAT

Sweden

Moms

Switzerland

MWST / TVA / TPV

Taiwan

加值型營業稅

Thailand

ภาษีมูลค่าเพิ่ม

Tunisia

TVA

Turkey

KDV

Ukraine

ПДВ / PDV

UAE

ضريبة القيمة المضافة

UK

VAT

Uruguay

IVA

Uzbekistan

QQS

Venezuela

IVA

Vietnam

GTGT

Zambia

VAT

 

The above list is not exhaustive and will continue to grow. In 2022, new VAT or GST systems will likely go-live in Qatar, Anguilla and Bhutan.

Sign up to our newsletter to receive regular Global VAT/GST updates. 

Contact one of out indirect tax speacialists to see how Avalara can help with Global VAT/GST compliance.

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