Please be aware that this site is informational only, and many external factors, unique to your company might apply.
Each company must make their own decisions about how they meet their tax obligations.
In the UK there are three VAT rates:
| VAT Rate | What the rate applies to | |
|---|---|---|
| Standard rate | 20% | Most goods and services |
| Reduced rate | 5% | Some goods and services, eg children’s car seats and home energy |
| Zero rate | 0% | Zero-rated goods and services, eg most food and children’s clothes |
You can generally reclaim the VAT paid on goods and services for your business. If a purchase is also for personal or private use you can only reclaim the business proportion of the VAT (such as reclaiming VAT on fuel costs).
Please visit the HMRC guidelines for more info on what you can reclaim for VAT.
Find out how UK companies can cope with four different VAT rates here.
Last changed 2026-01-26