Why You Should Hire A VAT Expert For Your Business In the United Kingdom, the Value Added Tax (VAT) is a consumption tax that is levied on the supply of goods and services. VAT is a tax that is paid by the final consumer, and it is the responsibility of the supplier to collect the tax from the consumer. VAT is usually set at a rate of 20%. It is a type of indirect tax. In the United Kingdom, if you are a business owner, you are required to charge VAT on your goods and services.