VAT Questions and Answers
In this section of the website we answer the most frequently asked questions regarding the UK VAT system. If you have a question you would like answered on this page please feel free to submit it via our contact page.
What is VAT? VAT stands for Value Added Tax and is charged upon purchase of most goods and services in the United Kingdom. The current VAT rate for the UK currently stands at 20% and has been since the 4th January 2011. There have been just 3 changes to the VAT rate since 1991. A global recession prompted a temporary reduction to 15% on the 1st December 2008 which lasted until the 1st January 2010, the VAT rate was then returned to the ever familiar 17.5% however on the 4th January 2011 the rate was raised to 20% following a coalition government emergency budget and has remained there ever since.
Random VAT Facts 1. VAT is a requirement of EU membership. From December 2015 no country is permitted to charge a VAT rate below 15%.2. VAT is the government's third largest source of revenue after income tax and national insurance.3. Pringles went all the way to the court of appeal to claim that their crisps were 'not made from potato' to avoid having to charge 20% VAT on their product.