"Thank you for your email in which you ask how much we are deducting at our checkouts as shown on our new Television advert. The standard rate of VAT increased from 17.5 per cent to 20 per cent on 4 January 2011. For any sales of standard-rated goods or services that Tesco make on or after 4 January 2011 VAT at the 20 per cent rate must be applied. For this reason Tesco 20 per cent off savings mean VAT-Free shopping – whether that's on luxuries like a fashionable jacket or lovely lingerie – or basics to make their lives easier such as laptops. We've got lots of bargains on a range of products – and customers can expect more from us in the coming weeks."