Economy 21h 59m left
Should VAT be cut to 10% in shops and raised to 25% on online shopping?
The UK standard VAT rate is 20% on most goods whether bought in a shop or online, and the 28 October 2026 Budget left the rates unchanged. Instead, the Budget will make online marketplaces such as Amazon and eBay collect VAT on UK sellers above £90,000 of sales from October 2027, with the money going towards business rates relief for high street businesses. Retail groups and think tanks have also floated a separate online sales tax, and a split VAT rate by sales channel would be a much bigger change.
1 Opinion
A 25% online VAT is a regressive tax that punishes everyday consumers with higher prices. We should instead regulate monopolies by taxing corporate profits, not by squeezing average households every time they shop online.