VAT is Value Added Tax. The current rate for VAT in the UK is 20%.

VAT is added to most products sold however, there are some exemptions. VAT is not added to books, manuals, and advertising leaflets.

VAT registered companies are able to claim VAT back. For more detailed explanations on VAT please look at these resources.

VAT Explained for SME’s.

Sage Accounting VAT explanation.