HMRC — Updated 2025

UK VAT Rates — 2026

Value Added Tax (VAT) is the UK's consumption tax. The standard rate is 20%, with reduced rates of 5% and 0% for certain goods and services.

Standard Rate
20%
Most goods & services
Reduced Rate
5%
Energy, children's car seats, etc.
Zero Rate
0%
Food, children's clothing, books
VAT Registration Threshold
£90,000
Annual turnover threshold (2024)

UK VAT Rate Categories

RateRate %Applies To
Standard20%Most goods and services not in other categories
Reduced5%Home energy, children's car seats, smoking cessation products, some renovations
Zero0%Most food (not restaurant), children's clothing, books and newspapers, most medical supplies, public transport
ExemptN/AInsurance, financial services, education, healthcare, postal services

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