value added tax (vat) april1973 on cosumer expedmiture and business do not bear final costs of vat but can charge vat on the supplies they make and recover vat from purchases. Standard rate 20 % and zerp on food, books, children clothing, reduced 5% for domestic fuel. Goods and services may be expect such as posatge, land and registration fpr vat is compulsory in most situations and if the value of taxable supplies exceeds 81.0000 and value of imports fronm EC countries exceeds 81.0000. Vat registration if you are already making supplies or intend to supply, established or fixed in the UK and make supplies outside the Uk and vat can help to ease cash flow such as setting a business up.Main schemes : standard and most common and raise invoices and recieved ibvoices .cash scheme; for registered businessnwho value of taxable supplies is 1350.000 or less and helps smaller businesses and must leave once reached 1600000 in previous year