How VAT works
How much VAT you must charge
There are 3 different rates of VAT that can be added to products. Which one applies depends on the goods and services, and how they’re used.
Most goods and services are charged at the standard rate of 20%. You should charge this rate unless the goods or services are classed as reduced or zero-rated.
Get a list of reduced or zero-rated goods and services.
Examples of zero-rated items include:
- books and newspapers
- children’s clothes and shoes
- motorcycle helmets
- most goods you export from England, Wales and Scotland (Great Britain) to a country outside the UK
- most goods you export from Northern Ireland to a country outside the EU and the UK
- goods you supply from Northern Ireland to a VAT-registered EU business - you can check if the VAT number is valid