Written Question·Treasury·UIN 86908

Small Businesses: VAT

Tabled: 30 October 2025
Answered: 7 November 2025

Question

Rupert Lowe

Restore Britain — Great Yarmouth

To ask the Chancellor of the Exchequer, what estimate she has made of the cost to the economy of compliance with VAT regulations for small businesses.

Answer

Dan Tomlinson
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. The UK’s VAT rate of 20 per cent is close to the OECD average of 19.3 per cent. The UK has a higher VAT registration threshold than any EU count...
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