Saturday, 3 June 2023

Countries with the highest sales tax rate on retailers

An analysis is provided here of different countries with the highest sales tax rates on their retail sector on the sale of their goods and services. Those countries have a general VAT (sales tax) rate and also charge reduced sales tax rate. They also exempt many of their goods and services from charge of general or / and reduced sales tax rate. Let us see analysis of Countries with the highest sales tax rate on retailers.

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Sales tax rates in India range from 0% to 40%. With rates of 5%, 18%, 28% in between, varying for 1,211 different types of items and services. India has a dual government structure with union level and state level governments. Each of which follows a separate but inclined taxation policy.


Hungary’s highest sales tax stands at 27% of the total sales value. The sales tax increased from 18% as from January 1, 2012. However, there is an exemption on some products, such as medicinal products and some food products, which are charged at 22% sales tax, and a tax of 18% is imposed on the provision of internet, catering and baking services.


In Brazil, average state VAT is 17% and inter-state supplies within Brazil (ICMS) are subject to a sales tax of 4%-25%. A reduced rate of 7% is taxed for basic food products, while certain products are exempt from VAT, including books, newspapers, fruit and vegetables. Exports are also exempt from VAT.


The government of Croatia imposes a 25% sales tax on the goods sold and services provided in the country. Goods that are subjected to 13% sales tax instead of the standard 25% include milk, bread, newspapers, books, medicines, and journals.


Denmark imposes a non-deductible VAT of 25%. A number of services have reduced VAT, for instance, public transportation of private persons, health care services, publishing newspapers, rent of premises, and travel agency operations.


Highest sales tax in Norway stands at 25%. A few goods as foodstuffs are subjected to a reduced sales tax of 15%. Services such as public transport and provision of network services in Norway have a reduced sales tax, which usually stands at 8%.


The sales tax subjected to goods and services in Sweden stands at 25%. There is an exemption for certain specified goods and services, including foods and medicinal products which are subject to a 12% sales tax.


In Finland, VAT is levied at a standard rate of 24%. Two reduced rates of 14% on food, restaurant services, catering services and animal feed. 10% on books, pharmaceutical products, services creating opportunities for physical exercise, passenger transportation and accommodation.



Greece imposes VAT between 6% and 24%. For all goods not belonging to any special category, the VAT is 24%; for Category 1 goods, the VAT is 13%, while for Category 2 goods it is 6%.


In Iceland, the standard rate of sales tax is 24%. All foodstuff carry 7% VAT, as do subscription fees, the sale of magazines, music CDs, books, the sale of hot water, electricity and fuel for heating houses and swimming pools. Restaurant and hotel services carry 11% VAT.

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Sales Tax Rates | Highest Sales Tax rates in World | Sales Tax Rate on Retailers | Highest VAT Rate in World |

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