There are different VAT rates, depending on the goods or services that are being provided. Currently there are three rates:
- standard rate 20 per cent
- reduced rate 5 per cent
- zero rate 0 per cent
The standard rate of VAT is the default rate - this is the rate that's charged on most goods and services in the UK unless they're specifically identified as being reduced or zero-rated.
Examples of reduced-rated items
These are some examples of goods and services that may be reduced-rated, depending on the product itself and the circumstances of the sale:
- domestic fuel and power
- installing energy-saving materials
- sanitary hygiene products
- children's car seats
This isn't a complete list of reduced-rated items and services.
Examples of zero-rated items
These are examples of goods and services that may be zero-rated, depending on the product itself and the circumstances of the sale:
- food - but not meals in restaurants or hot takeaways
- books and newspapers
- children's clothes and shoes
- public transport
This isn't a full list of zero-rated items.
Find out about goods and services where you have to charge VAT.