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Mythbust

Britain isn’t powerless to cut VAT

by Jack Schickler | 06.04.2016

Myth: UK is powerless to cut VAT

InFact: Single market requires common standards, but UK still has room to manoeuvre on VAT, or cut rates.

VAT is harmonised within the single market for a very good reason –  as products can be freely transported across borders, you do not want people simply shopping around for the country with the lowest rate. That said, Britain is still free to cut the main VAT rate to as low as 15%, or to offer a reduced rate on a range of extra products and services. A new EU deal also means we will soon be free to set a zero rate for tampons.

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Edited by Hugo Dixon

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5 Responses to “Britain isn’t powerless to cut VAT”

  • I see this site is moderated. Does that mean if you don’t agree with a point of view you won’t publish it?

  • The specific VAT point being made by Brexit is re VAT on fuel, and specifically banging on about the old and less well-off. There is nothing to stop this being handled another way, by extending to use and scope of the winter allowances for pensioners for instance.

    They really aren’t very smart are these Brexiteers – or a bunch of devious be!!ends – one or t’other.