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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 VAT Increase. From 4 January 2011, the standard rate of VAT in the UK will be 20%, raising an extra 13 billion over a year. The Centre for Retail Research estimated that this VAT increase would be passed on in full to the public as increased prices:1  Increasing CPI inflation by between 0.6% and 0.8%.2  Increase costs and prices by 520 per household (family).he Centre for Retail Research estimated that this VAT increase would be passed on in full to the public as increased prices: 1  Increasing CPI inflation by between 0.6% and 0.8%. 2  Increase costs and prices by 520 per household (family).