Countries with the Lowest VAT 2026

Jurisdictions that do charge VAT or GST, but at a standard rate of 10% or less, sorted from the lowest rate. Countries with no VAT at all have their own list; these are the low-rate options, with income and corporate tax alongside.

13 countries in this list

Short answer: Tax Atlas tracks 13 of 53 jurisdictions that meet this list's criteria: Andorra, Canada, Oman, Qatar, United Arab Emirates, Panama, Thailand, Malaysia and 5 more. The key figures for each are in the table below.

How This List Works

This page is generated from the TaxAtlas dataset. Rankings use the personal and business scores plus the underlying tax data (rates, foreign income treatment, and key notes). Always verify details using the sources listed on each country page.

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Key figures at a glance

The figures this list is built on, for every country in it. WHT is the standard withholding tax a company pays on outbound payments to non-residents, before any treaty reduction.

Country	VAT / GST	Top income tax	Corporate tax	Capital gains
AndorraEurope	4.5%	10%	10%	10%
CanadaNorth America	5%	33-54.8%	26.2-31%	0-27%
OmanMiddle East	5%	0 (5% from 2028)	15%	0%
QatarMiddle East	5%	0%	10%	0%
United Arab EmiratesMiddle East	5%	0%	9%	0%
PanamaSouth America	7%	25%	25%	10%
ThailandAsia	7%	35%	20%	0%
MalaysiaAsia	8%	30%	24%	0%
SwitzerlandEurope	8.1%	11.5-36%	11.9-20.5%	0%
SingaporeAsia	9%	24%	17%	0%
AustraliaOceania	10%	45%	30%	0-45%
BahrainMiddle East	10%	0%	0%	0%
ParaguaySouth America	10%	10%	10%	10%

Figures come from each country profile in the Tax Atlas dataset; each country page lists its sources and last-updated date. Rates are headline rates for residents; special regimes, treaty rates and local taxes can change the result. Not tax advice: verify with a qualified adviser.

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FAQ

Which country has the lowest VAT?

Leaving out the jurisdictions with no VAT at all, 13 of the 53 jurisdictions Tax Atlas tracks charge a standard VAT or GST rate of 10% or less. The lowest standard rate is 4.5%, in Andorra. The full ranking is in the key figures table.

Which European countries have the lowest VAT?

In Europe, Andorra (4.5%), Switzerland (8.1%) charge a standard rate of 10% or less in the dataset. EU member states must apply a standard rate of at least 15%, so every low-VAT European jurisdiction here is outside the EU VAT area.

Which low-VAT countries also have no income tax?

Qatar, United Arab Emirates, Bahrain combine a standard VAT rate of 10% or less with 0% personal income tax in the dataset. Corporate tax and other levies are set separately; see the key figures table.

Is the standard VAT rate what I will pay on everything?

Not always. Many countries apply reduced or zero rates to food, medicine or housing, and some add excise duties, customs duties or local sales taxes on top. Businesses usually reclaim VAT on their costs, so the rate matters most for consumers and for companies selling to them. Verify your own position with a qualified adviser.

How are these lists ranked?

Lists are generated from the country dataset using the criteria described on each country page (rates, foreign income treatment, and practical notes). Always confirm details with official sources.

Are these countries “tax free” for everyone?

Not necessarily. Residency rules, source rules, and special regimes vary by person. Use these lists as a starting point and verify your situation with local professionals.

How often is this updated?

We monitor listed sources periodically and update entries when changes are confirmed. Country pages show their last-updated date and citations.

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How This List Works

Andorra

Canada

Oman

Qatar

United Arab Emirates

Panama

Thailand

Malaysia

Switzerland

Singapore

Australia

Bahrain

Paraguay