English Reference
noun · verb

VAT

n. · v.
US /ˈvæt/ UK /vˈæt/ vat UK spelling vat's, vat's, vatted, vatting

  1. 01 B2 Upper Intermediate British English

    n.Stands for Value Added Tax. A type of tax you pay when you buy goods or services.

    n.Abbreviation for Value Added Tax. An indirect tax on the consumption of goods and services, usually collected at each stage of the supply chain.

    Simple

    The price of the new laptop includes VAT at the standard rate.

    In context

    Small business owners must register for VAT once their annual turnover exceeds the specific threshold set by the government.

    Usage

    Usually written in capital letters; often used as an uncountable noun.

    Teacher's tip

    While 'VAT' is the standard term in the UK and EU, American English speakers typically use 'sales tax' for a similar concept.

    sales taxconsumption tax
  2. 02 C1 Advanced Technical

    n.a very large tank or tub used for holding or mixing liquids, especially in a factory.

    n.a large vessel, cistern, or tub used for holding, mixing, or storing liquids during industrial processes like brewing or tanning.

    Simple

    The wine was aged in a giant oak vat for several months.

    In context

    Workers monitored the temperature of the chemical vat to ensure the dye bonded correctly with the fabric.

    Usage

    Often used in the context of brewing, winemaking, or chemical manufacturing.

  3. 03 C2 Proficiency TechnicalFormal Cooking

    v.to put or store a liquid in a large industrial container.

    v.to place or treat a liquid within a large industrial vessel, often for the purpose of blending or aging.

    Simple

    The distillery will vat the whiskey before it is bottled for sale.

    In context

    The master blender decided to vat the different vintages together to achieve a more consistent flavor profile.

VAT will be cut on electricity bills in October.

BBC News· 26 Aug 2026

It has also cut business rates for pubs and axed VAT from electricity bills.

BBC News· 18 Aug 2026
This entry
Level B2 · Upper Intermediate
Frequency Frequent
Updated