What is the VAT Rate

  ronalddonald 19:54 27 Jun 2010
Locked

Hi guys what is current VAT rate, it was 17.5% but i thought it had gone down to 15%

  ray7 20:08 27 Jun 2010

It went back to 17.5% Jan 1st and will increase to 20% Jan 2011.

  spuds 23:29 27 Jun 2010

But remember, certain items might be exempt or special rated. If anything specific, then ask Custom and Exercise or check their website.

  antonic 05:22 28 Jun 2010

and from 4th Jan 2011 its increased to 20%

  Big L 266 08:16 28 Jun 2010

Hello.

There are three rates of VAT in the UK. The first are goods which are zero-rated thus which have no VAT,the second are gas & electric which are 5% VAT on the total bills,and the third is 17.5% which covers everything else. In January next year it will be 20% but I can't find out if gas & electric costs remain at 5% VAT.

I have to say its a puerile tax which should be abolished.

Big L 266

  morddwyd 08:45 28 Jun 2010

Perhaps you'd like to go back to the Purchase Tax which it replaced.

25% on some "luxury" items like televisions.

  interzone55 08:59 28 Jun 2010

VAT is actually one of the fairer taxes, as it applies to everyone, there's few ways to get out of paying VAT.

Also, poorer families who spend a higher proportion of their income on fresh food and baby clothes do not pay VAT on these things...

  Ford Prefect 01 10:02 28 Jun 2010

I believe the VAT rate for fuel is going up to 6% from 5th January.

  Ford Prefect 01 10:15 28 Jun 2010

Apologies, I read in one of the papers that it was going to 6%, however digging around on HMRC's website it looks as if it will be staying at 5%.

Any accountants out there?

  jakimo 11:34 28 Jun 2010

A TV may no longer be classed a luxury, but 25% tax like mens "Makeover kits and perfume might be fare game

  spuds 11:38 28 Jun 2010

I only hope that we do not go the 'American Way' with State tax added in certain areas. Now that would really be confusing to a stranger, if we tried to set that up ;o)

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