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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.
VAT Defined. Value added tax is a general, broadly-based consumption duty that is calculated as a percentage of price. It is assessed on both goods and services used or consumed within the European Union.Goods sold for immediate export from the EU and/or services purchased by foreign customers are normally not subject to VAT.t is a consumption tax, meaning that it is borne by the end user; although any number of intermediaries may pay VAT on a product as it moves along its distribution pathway, these intermediaries claim the tax back as part of their accounting procedures. The only party that cannot claim the tax back is the end user.