Country tax profile · 2026
Palau VAT / sales tax
How Palau taxes VAT / sales
Palau charges a standard VAT/GST of 10% on most goods and services, with reduced rates on some essentials.
Compiled by MyNomadWorld for Palau and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.
How Palau's VAT / sales tax compares
Palau's VAT / sales tax of 10% is the 142nd highest of the 196 countries we track, against a global average of 14.1% and a Oceania average of 11.7%.
Countries with a similar VAT / sales tax
Djibouti (10%) · Iran (10%) · Liberia (10%) · Papua New Guinea (10%) · Paraguay (10%) · Vietnam (10%)
Who is a tax resident of Palau?
Wages and Salary Tax applies to wages earned in Palau regardless of residence, on a territorial basis. Foreign source and investment income is not taxed.
Related Palau taxes
Moving to Palau?
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What is the VAT / sales tax rate in Palau?
Palau charges a standard VAT/GST of 10% on most goods and services, with reduced rates on some essentials.