United Kingdom VAT / Sales Tax
Detailed vat / sales tax rates and rules for United Kingdom in 2026.
The UK's standard VAT rate is 20%, with a reduced rate of 5% applying to certain goods and services such as domestic fuel and power, children's car seats, and some energy-saving materials. A zero rate (0%) applies to essentials including most food items, children's clothing, books, newspapers, and public transport. Some supplies are VAT exempt, including financial services, education, and health services. Businesses must register for VAT if taxable turnover exceeds the registration threshold.
Standard Rate
20%
Registration Threshold
£90,000 annual taxable turnover
Reduced Rates
How United Kingdom VAT / Sales Tax compares
United Kingdom’s standard VAT / sales tax rate of 20% is the 27th highest of 203 countries TaxAtlas tracks, above the global average of 13.7% and Europe’s regional average of 19.9%.
