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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.
Value Added Tax (VAT) is one of the most controversial and disliked aspects of the United Kingdom tax system. At its most basic level, VAT is a consumption tax. Such is the importance of VAT in the UK that only income tax and national insurance generate more in funds for the UK government.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.