How Much Money Does VAT Generate The UK Government?

It’s no surprise that the UK government needs to raise funds to operate the country. Considering VAT applies to the vast majority of products and services bought and sold, it should also come as no surprise that it’s a massive source of revenue for the UK.

Below is a list of the total amount of VAT collected in recent years.

2021 – 2022131.9 billion GBP (Estimated at Present)
2020 – 2021101.65 billion GBP
2019 – 2020129.88 billion GBP
2018 – 2019132.17 billion GBP
2017 – 2018125.36 billion GBP
2016 – 2017 119.8 billion GBP
2015 – 2016 115.42 billion GBP
2014 – 2015 111.35 billion GBP

As you can see, VAT is an incredible money-spinner for the UK Government and one that is only going to rise higher as the years go on. In a 5 year period, between 2015 – 2020, the UK collected a staggering £622.63 billion pounds.

As of 2021, VAT is the 3rd largest revenue source for the UK government.

Based on that alone, you can see why HMRC loves VAT so much and why it has become one of the core revenue generating methods for the country.

You can use our vat calculator to work out how much of a product or service you paid for, generated in VAT. For most products purchased, it’s not a lot. When you’ve got the whole country continuously purchasing goods and services, it quickly adds up.

HMRC updates their VAT statistics yearly. The table above is updated as soon as possible after the data is released.