eb - VAT rates vary from one EU state to another. In the UK, it's 17.5%. In France it's 20.6%. In Ireland 23%! In Spain, 7%. The difference is that at retail outlets like shops, restaurants, the VAT is included in the posted prices instead of being added at the end. The reason the VAT is itemised separately in the above list is that businesses are able to reclaim it. I used to be able to reclaim VAT on computer eqipment purchases myself, but that went out the window when our "New" Labour "government" introduced a package of tax measures known collectively as IR35.