How much is VAT? A guide to UK VAT ratesMay 4, 2022
What is VAT?
UK VAT rates 2022/23
|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|
Flat Rate Scheme
Zero-rate, out of scope and VAT exemption
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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