VAT Rates in the UK
Updated UK VAT rate table
If you are VAT registered in the UK you are required to add VAT each time you perform taxable supplies. The kind of products or services you offer determines what constitutes as a taxable supply as well as the VAT rate you need to charge.
The standard rate for the United Kingdom is 20%, under Section 2 of the VAT Act 1994. Some goods and services are subject to a reduced VAT rate of 5%. Some supplies and services are VAT exempt.
VAT Rates in the UK
| The standard VAT (Value-Added Tax) rate is the most common rate that countries apply to most goods and services. While it covers a vast majority of items, there are certain essential or specified products and services that might have a lower rate, as detailed below. | |
Rate |
Good or Services |
| 20% | All goods or services not included in the reduced rates table below |
Reduced VAT rates |
|
| Certain goods and services are eligible for reduced VAT rates. as essential items or other specific goods or services that may have a reduced rate and are presented below. | |
| Rate | Good or Services |
| 5% | “Reduced rate” |
| Fuel and electricity for home heating: Certain types of fuel and electricity used for heating purposes in residential properties | |
| Installation of energy-saving materials: The installation of specified energy-saving materials in residential buildings and their surrounding land in Northern Ireland may qualify for the reduced rate, provided certain conditions are met. | |
| Goods or services funded by grants: Certain goods or services that are funded by grants and are related to the installation of heating equipment, security devices, or the connection of a gas supply for senior citizens or recipients of benefits | |
| Contraceptive products: Contraceptive products, unless supplied in a hospital or state-regulated institution as part of medical or surgical treatment | |
| Children’s car seats, carry cots, and safety seats: VAT at the reduced rate is applicable to children’s car seats, carry cots, and safety seats designed for use by infants and young children. | |
| Renovations or alterations of qualifying dwellings: The renovation or alteration of qualifying dwellings and residential premises that have been unoccupied for at least two years | |
| Mobility aids for the elderly: Mobility aids specifically designed for the elderly | |
| Smoking cessation products: Smoking cessation products, such as nicotine patches or gums | |
| 0% |
Zero rated products |
| Food: Most food items are zero-rated, subject to certain exceptions. | |
| Sewerage services and water: Supplies of sewerage services and water are zero-rated. | |
| Printed matter: Printed books, newspapers, periodicals, children’s picture and painting books, sheet music, maps, and similar printed matter are zero-rated. Electronically supplied books, newspapers, periodicals, and similar items also qualify, provided they do not consist predominantly of advertising, audio, or video content. | |
| Talking books and wireless sets for persons with disabilities: Talking books designed for individuals with disabilities and wireless sets for the blind | |
| First supplies of residential property by a developer: Certain first supplies of residential property by a developer | |
| Work on goods for export: The supply of work on goods for export or making arrangements for such work can be zero-rated, provided certain requirements are met. | |
| Other international services: Various services related to international trade and transportation, including assistance with exports, arrangements for services outside the UK, and international transportation of passengers and goods | |
| Caravans and houseboats: Caravans and houseboats meeting specific requirements may qualify for zero-rating. | |
| Gold transactions: Transactions involving gold held in the UK between central banks, or by a central bank to a member of the London Gold market | |
| First issue of bank notes: The first issue of bank notes by the Bank of England, Scottish banks, and Northern Irish banks | |
| Prescription drugs, medicines, and aids for disabled persons: Prescription drugs, medicines, and aids and equipment for disabled persons | |
| Equipment or aids for disabled people: Various types of equipment or aids for disabled individuals, including qualifying motor vehicles designed or adapted for disabled travel | |
| Specified imports and exports: Certain imports and exports are zero-rated, such as supplies before the delivery of an import entry, supplies related to defense projects, and zero-rated machine tools. | |
| Advertising services for charities: Advertising services provided to charities, goods sold at charitable fundraising events, sales of donated goods by charity shops, and the construction and sales of new buildings for a relevant charitable purpose | |
| Children’s clothing and footwear: Supplies of children’s clothing and footwear | |
| Protective equipment: Protective equipment, including cycle helmet | |
| Women’s sanitary products: Women’s sanitary products | |
| Installation services and supplies of energy-saving materials: In England and Wales, and Scotland, from April 1, 2022, until March 31, 2027, installation services and supplies of energy-saving materials are zero-rated. From April 1, 2027, the reduced rate applies. | |
Exempt From VAT |
|
| Services rendered by the Hellenic Post as well as the incidental supply of goods related to the service | |
| Non-commercial activities carried out by national radio and television networks | |
| Hospital, medical care, and diagnostic services rendered by public bodies as well as other incidental supply of goods and services related to the service rendered | |
| Medical services rendered by professionals, including those provided by psychologists, midwives, therapists, etc. | |
| Dental services | |
| Supply of milk, human organs, and blood | |
| Services rendered by unions/associations, provided that the services rendered are essential for the associations’ activities | |
| Supply of goods and services to refugees thru European and international organizations, charitable organizations, foreign countries, and embassies | |
| Transportation services for the sick or injured people, provided that | |
| Educational services and the related supply of goods and services | |
| Financial services, including banking, insurance, etc. | |
| Transactions relating to currencies used as legal tenders such as banknotes and coins (excluding collectors’ coins and bank notes) | |
| Lotteries, including betting and gaming | |
Because of the global pandemic (COVID-19) several countries introduced temporary modifications to their VAT rates in response to the economic fallout. The most common are the reductions in VAT rates in sectors which are most affected by this situation. Follow our VAT updates page in order to be updated on all the latest developments on VAT and all the latest VAT rates.
Last Updated: 28/08/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
