VAT rates

Value Added Tax (VAT) rates

Current Rate Percentage What the rate applies to
Standard 20% Most goods and services.
Reduced rate 5% Some goods and services, eg children's car seats and home energy.
Zero rate 0% Zero-rated goods and services, eg most food and children's clothes.
Exempt n/a eg: postage stamps, property transactions and insurance.
Outside the scope n/a eg: salaries and various payments subject to other taxes.

The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%).

If there is a requirement to split out VAT on an expense claim, look for the VAT registration number and VAT amount on the invoice on receipt to check if VAT is reclaimable.

To see how much is VAT use the VAT tool.

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