Country tax profile · 2026
Panama VAT / sales tax
How Panama taxes VAT / sales
Panama charges a standard VAT/GST of 7% on most goods and services, with reduced rates on some essentials.
Compiled by MyNomadWorld for Panama and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.
How Panama's VAT / sales tax compares
Panama's VAT / sales tax of 7% is the 164th highest of the 196 countries we track, against a global average of 14.1% and a North America average of 10.2%.
Countries with a similar VAT / sales tax
Thailand (7%) · Aruba (7%) · Nigeria (7.5%) · Malaysia (8%) · Maldives (8%) · Curaçao (6%)
Who is a tax resident of Panama?
Physically present and generating income in Panama for more than 183 days in the year (or permanent home / center of economic interest).
Related Panama taxes
Moving to Panama?
Get matched with a vetted Panama tax & immigration advisor who handles residency and the exit from your current country.
See advisors →Panama VAT / sales tax FAQ
What is the VAT / sales tax rate in Panama?
Panama charges a standard VAT/GST of 7% on most goods and services, with reduced rates on some essentials.