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What are the VAT tax rates?

1 min read

There are three different Value Added Tax (VAT) rates you need to know about.


VAT rates explained

When it comes to VAT, there are three different tax rates you can add to goods and services. Which rate applies to your business depends on what you’re selling.

20% is the standard rate that most goods and services will be charged at. But there are also VAT exceptions. These are goods and services that fall outside the scope of VAT, like insurance, postal services or health services. Find out more about them in our VAT guide.

The three rates of VAT are:

20% – The standard rate of VAT covers most goods and services unless they are declared otherwise.

5% – Items on a reduced rate generally have a VAT of just 5%. Some items in this category are gas and electricity in the home, children’s car seats and mobility aids for the elderly, for example.

0% – Zero-rate goods can still be VAT-taxable, meaning you must declare them on your VAT return but the consumer is not charged any of the tax (0%). Goods and services with a zero rate include books and newspapers, children’s clothes and motorcycle helmets. has a full list of VAT rates on different goods and services.