Rates of VAT

There are different VAT rates, depending on the goods or services that are being provided. At the moment there are three rates:

• Standard rate - 20 per cent
• Reduced rate - 5 per cent
• Zero rate - 0 per cent

The standard rate of VAT is the default rate - this is the rate that's charged on most goods and services in the UK unless they're specifically identified as being reduced or zero-rated.

Examples of reduced-rated items

These are some examples of goods and services that may be reduced-rated, depending on the product itself and the circumstances of the sale:

• Domestic fuel and power
• Installing energy-saving materials
• Sanitary hygiene products
• Children's car seats

This isn't a complete list of reduced-rated items and services.

Examples of zero-rated items

These are examples of goods and services that may be zero-rated, depending on the product itself and the circumstances of the sale:

• Food - but not meals in restaurants or hot takeaways
• Books and newspapers
• Children's clothes and shoes
• Public transport

This isn't a full list of zero-rated items.

We offer a range of solutions tailored to the tax needs of small business and companies. Contact us online using our online tax enquiry form or alternatively call us today.