<P> VAT is levied on most goods and services provided by registered businesses in the UK and some goods and services imported from outside the European Union . There are complex regulations for goods and services imported from within the EU . The default VAT rate is the standard rate , 20 % since 4 January 2011 . Some goods and services are subject to VAT at a reduced rate of 5 % ( such as domestic fuel ) or 0 % ( such as most food and children 's clothing ) . Others are exempt from VAT or outside the system altogether . </P>
when did vat change from 17.5 to 20
4 January 2011