The current value added tax in the United Kingdom is 17.5% but this is set to go up to 20% in the new year. This is a 2.5% increase in total.
The basics are:
- Increase due January 4th 2011
- Is currently 17.5%
- Will go up to 20%
Most goods ordered online in places like
Amazon
or bought physically in store will not be affected until January 4th. All orders placed before this date should not be affected.
As for the prices of goods, they can go up, down, or stay the same, depending on the retailer who can decide to lower margins.