Timor-Leste VAT / Sales Tax
Detailed vat / sales tax rates and rules for Timor-Leste in 2026.
VAT / Sales TaxUSD
Timor-Leste does not have a VAT system. Instead, it imposes a sales tax of 2.5% on the import and domestic supply of goods, and a services tax of 5% on designated services including hotel, restaurant, and telecommunications services. These are simple turnover taxes rather than multi-stage value-added taxes.
Standard Rate
2.5%
Registration Threshold
All businesses with taxable activities must register
Reduced Rates
5% — Services
How Timor-Leste VAT / Sales Tax compares
Timor-Leste’s standard VAT / sales tax rate of 2.5% is the 181st highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and Asia’s regional average of 9.6%.
Timor-Leste
2.5%
Asia average
9.6%
Global average
13.7%
