How much is VAT? A guide to UK VAT rates
May 4, 2022What is VAT?
UK VAT rates 2022/23
Rate | % | Applicable to |
---|---|---|
Standard | 20% | Most goods and services |
Reduced | 5% | Children's car seats, maternity and sanitary products, fuel and power for domestic use, energy-saved materials installed for domestic use |
Zero | 0% | Books and newspapers, children's clothes and shoes, motorcycle helmets |
Standard rate
Reduced rate
Zero-rate
Flat Rate Scheme
Zero-rate, out of scope and VAT exemption
VAT exempt
Out of scope
How much VAT do I charge?
Discounts and free gifts
Offer | How to charge VAT |
---|---|
Discounts | Charged on the discounted price (not the full price) |
Gifts | Charged on the gift's full value (in most cases — exceptions are listed below) |
Multi-buys | Charged on the combined price if all the items have the same VAT rate. If not, VAT is 'apportioned' as mixed-rate goods |
Coupons and vouchers | No VAT due if given away free at time of purchase. If not, VAT due on the price charged |
Link-save offers (e.g. buy-one-get-one-free) | VAT is apportioned as mixed-rate goods, although there are exceptions. VAT can be charged on the combined value of the link-save item if the incentive product:
|
Supplies | Condition to meet so no VAT is due |
---|---|
Free samples | Tester-sizes products that are given out solely for marketing purposes |
Free loans of business assets | The cost of hiring the asset is included in something else you sell |
Free gifts | The total cost of all gifts to the same person is less than £50 in a 12 month period |
Free services | You don't get any payment or goods or services in return |
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