Taxation in the United Kingdom/Value Added Tax

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Value Added Tax (VAT) is the third largest source of government revenues in the United Kingdom. It is charged at the standard rate of 20% on supplies of goods and services. It is therefore a tax on consumer expenditure. Certain goods and services are exempt from VAT, and others are subject to VAT at a lower rate of 5% (the reduced rate) or 0% ("zero-rated"). ([1])

References[edit]

  1. "Introduction to VAT". HM Revenue & Customs. http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_001222&propertyType=document#toc.