VAT and Sales Tax in Nauru

Nauru does not impose a Value Added Tax (VAT), Goods and Services Tax (GST), or any general sales tax. The rate is 0% on all goods and services.

No VAT / Sales Tax

Nauru has no VAT, no GST, and no general sales tax. There is no consumption tax added to goods or services at the point of sale. This applies to all transactions within the country, including:

• Retail purchases of goods
• Professional services
• Restaurant and hospitality services
• Accommodation and lodging
• Transportation services
• Imported goods (customs duties may apply separately)

Revenue Sources

Since Nauru has no broad-based consumption tax, the government raises revenue primarily through:

• Import duties and customs tariffs
• Business license fees
• Administrative charges and service fees
• Revenue from phosphate mining (historically)
• International aid and development assistance

Import Duties

While there is no VAT, goods imported into Nauru may be subject to customs duties and import taxes. These are collected at the border by the customs authority. The rates vary depending on the type of goods.

Comparison with Other Countries

Most countries in the Pacific region and globally impose a VAT or sales tax. Nauru's absence of such a tax provides advantages:

• No VAT burden on consumer purchases
• Simpler compliance for businesses (no VAT returns)
• No input VAT recovery issues
• Lower effective prices for goods and services

Future Developments

As of 2026, there are no plans to introduce a VAT or sales tax in Nauru. The 0% rate remains in effect.