Current VAT Rate in the UK

The current standard VAT rate in the UK is 20%. It applies to most goods and services. There are also two other rates: a reduced rate of 5% and a zero rate of 0%. These rates have been in place since 2011 for the standard rate, and they apply across the whole UK.

UK VAT rates at a glance

Rate	Percentage	Applies to
Standard rate	20%	Most goods and services — for example electronics, clothes for adults, restaurant meals and professional services.
Reduced rate	5%	A short list of items, including home energy (gas and electricity for your home), children's car seats and mobility aids for disabled people.
Zero rate	0%	Items such as most food, books and newspapers, and children's clothes and shoes. VAT is charged, but at 0%, so the price does not change.

Some goods and services are exempt, which means no VAT is charged at all — for example insurance, finance, health services and private education. Read more on our What is VAT? page.

Worked examples

Standard rate (20%): an item priced at £100 before VAT costs £100 + £20 VAT = £120 in total (multiply by 1.2).

Reduced rate (5%): a £100 home energy bill costs £100 + £5 VAT = £105 in total (multiply by 1.05).

Zero rate (0%): a £100 basket of basic food shopping stays £100 — no VAT is added.

Temporary change: from 1 October 2026 to 31 March 2027, domestic electricity in Great Britain is charged at 0% instead of 5% (gas stays at 5%, and Northern Ireland stays at 5%).

Work out the VAT on any price

Use our free VAT calculator on the homepage to add or remove VAT at 20%, 5% or 0% in one step — no sign-up needed.

If your sales are growing, you may also need our guide to the VAT registration threshold — businesses must register when taxable turnover goes over £90,000 in any rolling 12 months.

By VAT Calculatorz · Last updated October 2026 · Source: GOV.UK — VAT rates.