Table of contents

Table of contents

VAT Rates

In the UK there are three VAT rates:

VAT Rate What the rate applies to
Standard rate 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

 

You can generally reclaim the VAT paid on goods and services for your business. If a purchase is also for personal or private use you can only reclaim the business proportion of the VAT (such as reclaiming VAT on fuel costs).

Please visit the HMRC guidelines for more info on what you can reclaim for VAT.

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Find out how UK companies can cope with four different VAT rates here.

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