Complete reference guide to UK VAT rates for 2026. Standard rate 20%, reduced rate 5%, and zero-rated goods — all sourced from HMRC GOV.UK.
Last updated: January 2026. Source: HMRC VAT rates — GOV.UK. Always verify rates with HMRC before filing your VAT return.
The standard VAT rate of 20% applies to most goods and services sold in the UK. If you are unsure which rate applies, assume the standard rate applies unless HMRC specifically lists the item as reduced or zero-rated.
Examples: clothing (adult), electronics, professional services, software, hotel accommodation, restaurants, alcohol, vehicle sales.
The reduced VAT rate of 5% applies to specific categories of goods and services as defined by HMRC.
Examples: domestic energy (gas and electricity for homes), children's car seats, mobility aids for elderly people, nicotine patches, some energy-saving materials.
Zero-rated goods and services are subject to VAT but at a rate of 0%. Businesses selling zero-rated goods can still reclaim input VAT on their purchases — making this different from exempt supplies.
Examples: most food and drink (except alcohol, confectionery, crisps, ice cream), children's clothing and footwear, books and newspapers, most prescription medicines, public transport.
Some goods and services are exempt from VAT entirely — this is different from zero-rating. Businesses making only exempt supplies cannot register for VAT and cannot reclaim input VAT.
Examples: financial services, insurance, education, health and medical services, postal services (Royal Mail), betting and gaming.
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