Money
VAT
Value added tax: the UK tax added to the price of most goods and services, at a standard rate set by the government, with lower rates or none on some things. VAT-registered businesses charge it, pass it on to HMRC, and claim back the VAT they pay on their own purchases.
A plain-English explanation, not financial or tax advice. Rules and rates change, so check your own situation. For free, impartial guidance, try MoneyHelper. Disclaimer.
You'll hear it as
Is that quote ex VAT or inc VAT?
Why it matters to you.
Business prices are usually quoted without VAT, so the invoice can be noticeably more than the quote. Check before you compare.
Related terms.
Videos.
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