The main VAT rates in the UK are 20% (standard), 5% (reduced), and 0% (zero rate), depending on the type of goods or services.
This guide explains the current UK VAT rates and when each rate applies.
What is the Standard VAT Rate in the UK?
The standard VAT rate in the UK is 20%. This is the most common rate and applies to the majority of goods and services.
Businesses must charge this rate unless a reduced or zero rate applies to their products or services.
What is the Reduced VAT Rate?
The reduced VAT rate is 5% and applies to specific goods and services.
This includes items such as home energy, insulation, and certain health-related products.
What is the Zero VAT Rate?
Some goods and services are zero-rated, meaning VAT is charged at 0%.
Examples include most food, children’s clothing, books, and newspapers.
Examples of VAT Calculations
Here are some common VAT calculations using the standard 20% rate:
VAT on £100 is £20, making the total £120.
VAT on £300 is £60, making the total £360.
VAT on £500 is £100, making the total £600.
Current UK VAT Rates
Standard rate: 20%
Reduced rate: 5%
Zero rate: 0%
You can use our VAT Calculator to add or remove VAT, or our Reverse VAT Calculator to remove VAT from a total price.
Disclaimer
This guide is for general information only. While every effort is made to ensure accuracy, we are an independent resource and not affiliated with HMRC. VAT rules can change, and their application may vary depending on your circumstances. You should consult a qualified accountant or tax professional for specific advice.