Value Added Tax (VAT) is a tax that's charged on most goods and services that VAT-registered
businesses provide in the UK. It's also charged on goods and some services that are
imported from countries outside the European Union (EU), and brought into the UK
from other EU countries.
VAT is charged when a VAT-registered business sells to either another business or
to a non-business customer.
When VAT-registered businesses buy goods or services they can generally reclaim the
VAT they've paid.
There are three rates of VAT, depending on the goods or services the business provides.
The rates are: