VAT rules for goods and services
How do VAT rates work?
Rules for VAT in the U.K.
You can only charge VAT if your business is registered for VAT. Different rules apply to entities like registered charities.
Which VAT rate applies?
Reduced VAT rate
U.K. domestic fuel or power, or children's car seats are always charged at the reduced VAT rate of 5%.
Standard VAT rate
For practically all goods and services that are not specifically zero-rated or rated for reduced VAT, the standard VAT rate applies. This includes alcoholic beverages, catering, hot takeaway meals, wellness massages and services from barbers or haircare specialists.