Main menu For students For teachers Explore our subjects Student events & courses

Explore

More for students
Sign in

Free Economics resources

Topic Videos

Taxation - Economics of Value Added Tax

Level:
A-Level, GCSE, IB Diploma
Board:
AQA, Edexcel, Eduqas, IB, OCR, WJEC

Last updated 29 Dec 2022

Share this content:

This revision video looks at value added tax (VAT) which is one of the top three generators of tax revenue for the UK government.

VAT is an ad valorem indirect tax which is charged on the purchase of many goods and services. The standard rate of VAT in the UK was increased from 17.5% to 20% from January 2011 and has remained at 20% since then. Some goods and services are exempt from VAT.

Economics of Value Added Tax
Share this content:

You might also like

In the News Teaching Activity – Can the UK afford a big rise in defence spending? (July 2026)

13th July 2026

In the News Teaching Activity – What key economic challenges will a new PM face? (June 2026)

29th June 2026

In the News Teaching Activity – What policies help raise the birth rate in an economy? (June 2026)

25th June 2026

In the News Teaching Activity – Is the recent reduction in government borrowing likely to last? (May 2026)

7th May 2026

In the News Teaching Activity – Why has the UK digital services tax triggered US tariff threats? (May 2026)

4th May 2026

In the News Teaching Activity – What is the state of the UK’s economy? (Apr 2026)

30th April 2026

Master These Fiscal Policy Stats Before Your 2026 A-Level Economics Exams

20th April 2026

Macro Case Study: USA and Inequality

Topical case studies