Value Added Tax, VAT
- (Photo: European Commission)
A tax added to the price of products in the shops and to the price of most services.
All EU Member States must have a VAT rate between 15% and 25 % on all products and services, with a few opt-outs (derogations) from this rule. 1% of the VAT base is paid as a contribution to the EU and forms part of the EU’s so-called “own income” or “own resources”.
Notes
Decisions at EU level on taxation require unanimity.
Britain and VAT
British VAT is currently 17.5%
Links
http://europa.eu.int/scadplus/leg/en/s10000.htm
