VAT Rates — Quick Reference for SMEs
Quick reference to standard, reduced, zero‑rated, exempt and outside‑scope VAT for UK businesses.
UK VAT rates — quick reference
| Rate | Typical use | Notes |
|---|---|---|
| Standard rate | Most goods & services | Charge standard VAT unless a specific relief applies. |
| Reduced rate | Selected items (e.g., energy‑saving) | Check HMRC list for eligibility and evidence. |
| Zero rate | Books, children’s clothing, exports | Taxable at 0%; input VAT recoverable. |
| Exempt | Finance, insurance, some education | No VAT to charge; partial exemption may apply. |
| Outside scope | Wages, donations (pure), dividends | No VAT. Consider business/non‑business splits. |
Please use following links to read more on several VAT rates and thresholds
VAT rates explained: standard, reduced, zero, exempt
Standard, reduced-rate, zero-rate, exempt and outside the scope of VAT explained
Rates of VAT on different goods and services
A detailed list of goods and services showing which rates of VAT apply and which items are exempt or outside of the scope of VAT
VAT rates, thresholds, fuel scale charges, exchange rates
VAT rates, registration and deregistration thresholds, fuel scale charges, exchange rates for VAT calculations, interest rates
Calculating VAT for VAT-inclusive and VAT-exclusive prices
Calculate the VAT to add to a VAT-exclusive price, work out how much is included in a VAT-inclusive price - VAT fractions
Trade sectors with special VAT rates, rules or concessions
Many trade sectors have special VAT rules or are able to zero-rate or reduced-rate products and services they supply