VAT stands for value added tax
The standard VAT rate is 20% (it used to be 17.5% but it was increased in 2011)
What actually is it?
In the EU VAT is a general type of consumption tax that is based on the value-added to goods and services, it’s worked out as a percentage. For all goods and services that are bought and sold for consumption in the EU, VAT is applied.
There are a selection of things that are exempt from VAT, for example, postage stamps, financial and property transactions. You can view a full list here.