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UK raises VAT 2.5% to 20% in 2011


UK raises VAT 2.5% to 20% in 2011

The UK Chancellor, George Osborne, today announced an increase in the UK’s standard VAT rate from 17.5% to 20%.  The rise will come into effect on the 4th January 2011.  There will be no change to the reduce VAT rate.

At an emergency budget held by the new Conservative government introduce a number of fiscal and spending austerity measures.

The UK VAT had been temporarily reduced from 17.5% to 15% in 2009 by the last, Labour government.

The UK’s rise copies other similar consumption tax rises across Europe, including: Spain, Portugal, Greece, Hungary and Romania.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.