What is Gibraltar's Transaction Tax and how much is it?

Short answer

The Transaction Tax is Gibraltar's main indirect tax on goods, introduced on 15 July 2026 to replace import duty. The standard rate is 15% for the first year, 16% for the second year and 17%, or the lowest standard VAT rate then applied in an EU Member State, from the third year.

Detailed answer

• 15% standard rate in the first year
• 16% in the second year
• 17%, or the lowest EU standard VAT rate if different, from the third year

The tax is charged on the customs value of goods when they are imported into Gibraltar, manufactured there or released from bond, and all revenue is collected in Gibraltar. Reduced rates of 5% and 0% apply to goods listed in the EU VAT rules, and goods leaving Gibraltar for use elsewhere, bunkering fuel and ship supplies are exempt. It applies to goods only and does not tax ordinary services.