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VAT rates for goods and services. The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%). Some things are exempt from VAT, eg postage stamps, financial and property transactions. The VAT rate businesses charge depends on their goods and services. Check the rates of VAT on different goods and services.
Value added tax is a tax levied by the government on sales of goods and services. All businesses which have an annual turnover of more than the current VAT threshold â currently Â£82,000 â must register for VAT and complete a quarterly VAT return.. Flat rate scheme. If your business has a turnover of less than Â£150,000 you can opt to pay VAT under the Flat Rate Scheme. The big advantage of this it is means you donât have to keep a record of the VAT you charge on every sales or pay on every purchase.