This paper compares the VAT and VAT-like structure in the ASEAN member states, including Timor-Leste.
Among the ten ASEAN member-states, six countries are imposing VAT, namely, the Philippines, Cambodia, Indonesia, Lao PDR, Thailand, and Vietnam, while three countries are imposing VAT-like structures, namely, the sales and services tax (SST) of Malaysia, the commercial tax (CT) of Myanmar, and the goods and services tax (GST) of Singapore. Brunei does not impose VAT or any VAT-like structure. Timor-Leste imposes a tax structure similar to Malaysia’s SST.
The Philippines VAT rate is 12%, while Cambodia and Thailand are 10% and 7%, respectively. Indonesia has increased its VAT rate from 10% to 11%, while Lao PDR has decreased it from 10% to 7%. Vietnam has a 10% standard VAT rate for goods and services not eligible for exemptions. Indonesia has a special VAT base, subject to certain conditions. Singapore's GST rate is 8%, while Myanmar has increased its CT rate from 1% to 15%. Malaysia has a three-tiered SST rate, while Timor-Leste has a two-tiered service tax of 0% and 5% and a sales tax of 0% and 2.5%. ASEAN member states generally impose a zero-rated VAT/VAT-like structure on exports of goods and certain types of specific services to avoid taxing the products or services twice and VAT exemption on the sale or importation of agricultural and marine food products in their original state and the sale, importation, printing, or publication of books.