VAT in Scotland

Yes. Value Added Tax (VAT) applies in Scotland as part of the UK. Standard rate: 20%. Reduced rates: 5% (children's clothing/footwear), 0% (books, newspapers, magazines). VAT covers most goods/services sold in shops, online, by mail order, and services like hairdressing, plumbing, accommodation, restaurant meals, alcohol, tobacco. Exemptions include land/building sales and certain financial services. VAT-registered businesses must charge VAT and file regular returns with HMRC.