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Countries with No VAT or Sales Tax

Countries that do not impose a value-added tax or national sales tax.

Around 20 countries and territories levy no value-added tax (VAT) or national sales tax. The most prominent is the United States, which has no federal VAT or sales tax — though most US states levy their own state and local sales taxes of roughly 4–10%. The rest are mostly small island economies and financial centres such as Hong Kong, Macau, Bermuda, the Cayman Islands, and Qatar (which has announced but not yet implemented VAT).

Countries without VAT usually raise consumption revenue another way — import duties are the classic substitute in island economies, which can make everyday goods more expensive than the "no VAT" label suggests.

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