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VAT rates for goods and services. The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%). Some things are exempt from VAT, eg postage stamps, financial and property transactions. The VAT rate businesses charge depends on their goods and services. Check the rates of VAT on different goods and services.
The sums of money raised as VAT is often the inspiration for calls to reduce the VAT rate, while opponents of the European Union (EU) in the UK often cite the EUâs law that states the standard rate of VAT cannot be lower than 15%.or the last completed tax year, 2013/14, the estimated VAT receipts for the UK Government are Â£105.3billion. The Institute for Fiscal Studies projects up to 2016/17, when it projects VAT revenues of Â£120.4billion.