Outside the EU VAT area
United Kingdom VAT
The UK left the EU VAT area. Standard VAT is 20%, the reduced rate is 5%, and a zero rate covers most food, books, children’s clothes, and exports. EU reverse-charge rules no longer apply automatically between the UK and the EU. A UK business selling services to an EU business normally does not charge UK VAT; the EU customer may have to self-account. Northern Ireland remains special for goods.
Standard
20%
Most goods and services.
Reduced
5%
Domestic fuel, children’s car seats, and a short list of other supplies.
Zero
0%
Most food, books, children’s clothing, and qualifying exports.
Net to gross
United Kingdom pageNet
£100.00
VAT
£20.00
Gross
£120.00
Most goods and services. Rounded to cents. Not tax advice.
When the rate changed
- 4 Jan 2011 – now20% Standard. Most goods and services.
- 1 Sept 1997 – now5% Reduced. Domestic fuel, children’s car seats, and a short list of other supplies.
- 1 Jan 1973 – now0% Zero. Most food, books, children’s clothing, and qualifying exports.