Rates last checked: 10 October 2026. The rates below match the GOV.UK VAT rates page. Sources are listed at the end of this page.
UK VAT rates
| Rate | VAT | Applies to |
|---|---|---|
| Standard | 20% | Most goods and services |
| Reduced | 5% | Some goods and services, for example children's car seats and home energy |
| Zero | 0% | Zero-rated goods and services, for example most food and children's clothes |
The standard rate has been 20% since 4 January 2011. Some things are exempt from VAT, such as postage stamps and financial and property transactions. GOV.UK has the full list of rates for different goods and services.
How to add and remove VAT
The last two lines are the VAT fractions. At 20% the VAT is 20 parts out of 120, which is one sixth of the gross price. At 5% it is 5 parts out of 105, which is one twenty-first.
Worked examples
Adding VAT. A net price of £100.00 at the standard rate has £20.00 of VAT, so the gross price is £120.00.
Removing VAT. A shelf price of £99.99 including 20% VAT is £83.33 net, with £16.66 of VAT.
Do I need to charge VAT?
GOV.UK says you must register for VAT if your total taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over that in the next 30 days. This page does not cover VAT schemes or special cases. Check GOV.UK or ask an accountant.