Temporary change: domestic electricity. From 1 October 2026 to 31 March 2027, electricity supplied for domestic use in Great Britain is zero-rated (0%) instead of 5%. In Northern Ireland it stays at 5%. Gas and other fuels stay at 5%. HMRC Revenue and Customs Brief 10 (2026)
Standard rate: 20%
The standard rate applies to most goods and services in the UK. If something is not listed as reduced-rate, zero-rated or exempt, it is standard-rated. Examples include:
- Adult clothing and shoes
- Electronics, furniture and household goods
- Restaurant meals and hot takeaway food
- Alcohol, soft drinks, confectionery and crisps
- Most professional services, such as web design, consultancy and repairs
- Private school fees (standard-rated since 1 January 2025)
The standard rate has been 20% since 4 January 2011.
Reduced rate: 5%
The reduced rate applies to a short list of goods and services, including:
- Domestic gas and other heating fuels (and domestic electricity in Northern Ireland)
- Children's car seats
- Mobility aids for older people, such as grab rails and stair lifts, when installed in their home
- Smoking cessation products, such as nicotine patches and gum
- Some residential conversions and renovations of homes that have been empty for two years or more
Zero rate: 0%
Zero-rated goods and services are still VAT-taxable, but the rate is 0%. Examples include:
- Most food and drink for human consumption (not catering, hot takeaway food or the standard-rated items above)
- Books, newspapers and magazines, including e-books
- Children's clothes and shoes
- Public transport, including train tickets, buses and flights
- Women's sanitary products
- Prescription medicines
- Installing energy-saving materials, such as solar panels and insulation, in homes (until 31 March 2027)
- Domestic electricity in Great Britain (temporarily, 1 October 2026 to 31 March 2027)
Exempt from VAT
Exempt goods and services are outside the VAT system, so no VAT is charged. Examples include:
- Insurance
- Most financial services and loans
- Education and training from eligible bodies
- Health services from registered professionals, such as doctors and dentists
- Postage stamps and Royal Mail universal postal services
- Renting out residential property
- Betting, gaming and lotteries
Zero-rated vs exempt: why it matters
Neither adds VAT to the price, but they are treated differently for businesses. Zero-rated sales count towards your taxable turnover for the VAT registration threshold, and you can usually reclaim VAT on costs linked to them. Exempt sales do not count towards the threshold, and you usually cannot reclaim VAT on costs linked to them.
VAT registration thresholds
| Threshold | Amount |
|---|---|
| Registration: taxable turnover in any rolling 12 months | £90,000 |
| Deregistration: expected taxable turnover in the next 12 months | £88,000 |
These thresholds have applied since 1 April 2024. You must also register if you expect your taxable turnover to go over £90,000 in the next 30 days alone. Read our guide on how to register for VAT, or check the official rules on GOV.UK.
Calculate VAT at any rate
All our calculators use the rates on this page:
- VAT Calculator — add or remove VAT
- Reverse VAT Calculator — find the price before VAT
- VAT Percentage Calculator — VAT at any percentage, or find the rate
- VAT Invoice Calculator — mixed rates on one invoice
Changes to this page
| Date | Change |
|---|---|
| 26 September 2026 | Page published. Added the temporary zero rate for domestic electricity in Great Britain from 1 October 2026. |
This page summarises the main rates. The full list, with the conditions that apply to each item, is on GOV.UK: VAT rates on different goods and services. It is general information, not tax advice.