VAT rates - United Kingdom
Standard VAT Rate
📌 The standard VAT rate in the UK is 20%, which applies to most goods and services.
Reduced VAT Rate
📉 A reduced VAT rate of 5% applies to:
✔️ Domestic energy (gas & electricity)
✔️ Children's car seats
✔️ Energy-saving materials for home improvement
✔️ Certain social housing projects
The UK applies a 0% VAT rate to certain goods, such as books, children's clothing, and exports. However, VAT reporting is still required. Keep in mind that zero-rated VAT does not mean exemption—businesses may still need to report sales. The availability of 0% VAT depends on the type of goods/services sold.
For more details, please visit the official UK government website or consult your tax advisor.
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