VAT guide

UK VAT Rates: 20%, 5% and 0% Explained

Compare the headline rates and check the treatment of a specific supply.

Published September 26, 2026 · Updated September 26, 2026

The headline rates

The UK standard rate is 20%, the reduced rate is 5%, and the zero rate is 0%. Most goods and services use the standard rate. Qualifying supplies such as domestic energy can use 5%; qualifying food and children’s clothing can use 0%. Conditions and exceptions matter.

Compare the same net amount

At a £200 net price, 20% adds £40 for a £240 gross total. At 5%, VAT is £10 and the gross total is £210. At 0%, the gross stays £200. Changing the rate changes the tax calculation; it does not establish that the selected rate is legally available.

Check the actual supply

Start with the goods or services supplied and the circumstances of the transaction. Record the HMRC guidance supporting the rate you select. If your invoice has different treatments, split the lines before calculating totals. Do not apply the most common rate to everything simply because it is the calculator default.

Zero, exempt and outside scope

A 0% arithmetic result is not a complete tax code. Exempt and outside-scope transactions require separate consideration, particularly for records and input VAT. Use the linked distinction guide if you are unsure which label belongs on your transaction.

Explore the numbers

One price. Three parts.

Move the rate slider to see how VAT changes a £100 net price.

01 / NET£100Before VAT
02 / VAT£20Added tax
03 / GROSS£120Customer pays

£100 + £20 VAT = £120 total

This slider explains the arithmetic. It does not determine the legal rate for your sale.

Keep learning

Official sources

Sources checked: 2026-09-26. Check the official guidance for later changes.

Educational information and estimates. These tools do not submit VAT returns or determine the treatment of a specific transaction.