VAT rates in the United Kingdom for 2026
The United Kingdom charges VAT at a standard rate of 20%, with a reduced rate of 5% and a zero rate (0%). Amounts on this page are in British Pound (GBP).
20% standard, 5% on domestic fuel and children's car seats. Most food, books, newspapers and children's clothing are zero-rated — taxed at 0% rather than exempt, so the seller still reclaims input VAT.
| Rate | Type | Gross = net × | Tax share of the gross price |
|---|---|---|---|
| 20% | standard | 1.2 | 16.67% |
| 5% | reduced | 1.05 | 4.76% |
| 0% | zero rate | 1 | 0% |
How much VAT is inside a price
If a price already includes VAT, divide by 1 plus the rate: at 5%, £100 ÷ 1.05 = £95.24 before tax, so £4.76 is tax.
| Rate | Tax in £100 | Net of £100 | Tax in £1,000 | Net of £1,000 |
|---|---|---|---|---|
| 20% | £16.67 | £83.33 | £166.67 | £833.33 |
| 5% | £4.76 | £95.24 | £47.62 | £952.38 |
Adding VAT to a net amount
For a quote or invoice, multiply the net amount by 1 plus the rate: at 5%, £1,000 × 1.05 = £1,050.
| Rate | Tax on £100 | £100 plus tax | Tax on £1,000 | £1,000 plus tax |
|---|---|---|---|---|
| 20% | £20 | £120 | £200 | £1,200 |
| 5% | £5 | £105 | £50 | £1,050 |
How the United Kingdom's standard rate compares
The United Kingdom's 20% standard rate compares with a median of 18%: 10 of the 39 countries in this calculator's table charge more, 25 less. Its lowest rate above zero is 5%: 7 countries go lower, and 23 have no rate that low.
France, Türkiye, and Morocco also charge 20% as standard.
5% is also used by Taiwan, Vietnam, India, Italy, Poland, the United Arab Emirates, Egypt, Canada, and Colombia.