Money and banking / B1

vee-ay-TEE/ˌviː eɪ ˈtiː/

VAT (value added tax) is the UK tax added to most goods and services, included in the shelf price in shops. US sales tax is often added at the till instead. Say the letters V-A-T, and look for prices including VAT, excluding VAT, or a VAT receipt. It is uncountable as the tax, and not a large tub (a vat of something) in this money sense.

Meaning

Value added tax, a tax added to most UK goods and services.

Examples

• “The price on the shelf already includes VAT.”
• “The plumber quoted two hundred pounds plus VAT.”
• “Ask for a VAT receipt if you need to claim the tax back at work.”

Good to know

VAT (UK). US close: sales tax (often added at the till). including / excluding / plus VAT. Not a tub.

Near in meaning

value added tax

Topics

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