Cap on VAT rates

A cap on VAT rates is a limit set by the government to prevent the standard VAT rate from exceeding a certain percentage. This means that even if economic factors or policy changes might suggest a higher rate, the cap ensures the VAT rate cannot go beyond that predetermined level. It provides stability and predictability for consumers and businesses, helping to avoid unpredictable tax increases. Essentially, it's a maximum boundary for how much VAT can be applied, maintaining a consistent and controlled tax environment.