VAT Rates on Different Goods and Services

June 3, 2026 · WOWERI

VAT rates vary depending on the type of goods or services. Check the list to find out which VAT rate applies to your business. VAT rates can change, so it's essential to stay up-to-date with the latest updates.

Introduction to VAT

VAT (Value Added Tax) is a type of indirect tax that applies to most goods and services in the UK. VAT rates vary depending on the type of goods or services.

VAT Rates

There are three main VAT rates:

• Standard Rate: 20% - applies to most goods and services
• Reduced Rate: 5% - applies to certain goods and services, such as child car seats and some medical devices
• Zero Rate: 0% - applies to certain goods and services, such as food and children's clothing

Exemptions and Exceptions from VAT

Some goods and services are exempt from VAT or are not taxable. These include:

• Financial Services: banking services, insurance, and other financial services
• Medical Services: medical care, dental services, and other medical services
• Educational Services: educational services provided by schools and universities

Conclusion

VAT rates can be complex and changeable. It's essential to stay up-to-date with the latest updates and consult with a tax professional to ensure your business complies with all requirements.

Source: gov.uk