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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.
Sales tax is a direct tax that is levied on a the price of a finished product, or service, and imposed on a buyer. Mechanism. VAT is calculated by subtracting the cost of output from the value of output. This can be written as: VAT = Value of Output -- Cost of Output.