VAT vs GST: Are They the Same?
Quick answer: GST (Goods and Services Tax) and VAT (Value Added Tax) work the same way. Both are charged at each stage of supply, with input tax credits for businesses. The difference is mostly the name. Australia, New Zealand, Singapore and Canada call it GST. The UK, EU and Gulf states call it VAT.
Similarities
- Both are multi-stage consumption taxes.
- Registered businesses charge output tax and reclaim input tax.
- Both use the same formulas: Gross = Net × (1 + rate).
Differences you may see
- Structure: some GST systems are split between federal and state levels, as in Canada (GST plus provincial HST/PST).
- Rates: GST rates tend to be lower, for example 10% in Australia and 9% in Singapore.
GST rates
| Country | GST rate |
|---|---|
| Australia | 10% |
| New Zealand | 15% |
| Singapore | 9% |
| Canada (federal) | 5% |
Calculate GST
Choose Australia, New Zealand or Singapore in our VAT calculator, or type any GST rate as a custom rate. Adding and removing GST works exactly like VAT.
Calculate GST or VAT with the free VAT calculator, or read VAT vs sales tax.
Sources: Source: Singapore’s tax authority IRAS: Goods and Services Tax, a good example of a GST system.
