Palau VAT / Sales Tax
Detailed vat / sales tax rates and rules for Palau in 2026.
VAT / Sales TaxUSD
Palau introduced the Palau Goods and Services Tax (PGST) at a rate of 10% on most goods and services. The PGST replaced the previous hotel room tax and other consumption taxes. Exports are zero-rated. The PGST is designed to broaden the tax base and reduce reliance on US Compact funding.
Standard Rate
10%
Registration Threshold
All businesses must register
Reduced Rates
0% — Exports
How Palau VAT / Sales Tax compares
Palau’s standard VAT / sales tax rate of 10% is the 140th highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and Oceania’s regional average of 7.1%.
Palau
10%
Oceania average
7.1%
Global average
13.7%
