The United Kingdom uses three main VAT rates that affect how prices are calculated on goods and services. The standard VAT rate is 20%, applying to most everyday purchases such as clothing, electronics, and professional services. A reduced rate of 5% covers essential items like domestic energy and children’s car seats, while 0% zero-rated items include most food, books, and children’s clothing. Some sectors, such as healthcare, education, and financial services, remain VAT-exempt. Understanding these rates is important for accurate pricing, and a VAT Calculator makes it easy to add or remove VAT and work out the correct totals instantly.
| VAT Rate | Percentage | Description & Examples |
|---|---|---|
| Standard Rate | 20% | Most goods and services e.g. electronics, adult clothing, restaurant meals, petrol, car repairs |
| Reduced Rate | 5% | Domestic fuel & power, children’s car seats, some renovations, sanitary products |
| Zero Rate | 0% | Most food, books, newspapers, children’s clothes, public transport |
| Exempt | — | Insurance, education, health services, postage stamps, finance |
| Outside the scope | — | Salaries, donations, statutory fees, gifts |
Source: HMRC – Rates correct as of November 2025