When do I need to register for VAT?

You must register for VAT if your taxable turnover exceeds GBP 90,000 in any 12-month period (2026-27 threshold). You can also register voluntarily below this threshold.

What goods qualify for the reduced or zero rate?

The 5% reduced rate applies to domestic energy, children's car seats and certain other items, while the zero rate (0%) covers most food, children's clothing and books (VATA 1994 Sch.7A and Sch.8).

What is the difference between exempt and zero-rated?

Zero-rated supplies are still taxable at 0%, so the business can reclaim input VAT on its costs. Exempt supplies are outside the VAT system and the business cannot reclaim related input VAT (VATA 1994 Sch.9).

UK VAT Calculator

Calculate Value Added Tax

UK VAT is charged at 20% (standard rate) on most goods and services. A reduced rate of 5% applies to items like domestic energy and children's car seats. Some goods are zero-rated (0%), including most food and children's clothing.

Frequently Asked Questions

When do I need to register for VAT?+
What goods qualify for the reduced or zero rate?+
What is the difference between exempt and zero-rated?+