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