Small Businesses: VAT
Commons · Question 86908 · Tabled 30 Oct 2025 · Treasury · Official record
Answered 7 Nov 2025
Question
Asked by Rupert Lowe
To ask the Chancellor of the Exchequer, what estimate she has made of the cost to the economy of compliance with VAT regulations for small businesses.
Answer
Answered by Dan Tomlinson, 7 Nov 2025
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. The UK’s VAT rate of 20 per cent is close to the OECD average of 19.3 per cent. The UK has a higher VAT registration threshold than any EU count...