VAT is a tax you pay on most goods and services.
\n\n| \n | % of VAT\n | \nWhat the rate applies to | \n
|---|---|---|
| Standard rate | \n20% | \nMost goods and services | \n
| Reduced rate | \n5% | \nSome goods and services, for example children’s car seats and some energy-saving materials in the home | \n
| Zero rate | \n0% | \nZero-rated goods and services, for example most food and children’s clothes | \n
Check the VAT rates on different goods and services. Some things are exempt from VAT, such as postage stamps and some financial and property transactions.
\n\nVAT is normally included in the price you see in shops, but there are some exceptions.
\n\nYou do not have to pay VAT on certain goods and services if they’re just for your own use and you’re disabled or have a long-term illness.
\n\nYou pay different taxes on:
\n\nAirlines have to pay air passenger duty for every flight from the UK. Most airline tickets include a separate charge to cover this cost.
\n\nGambling operators (for example, betting shops and websites, casinos or slot machine owners) have to pay gambling duties on profits they make from gambling. Customers do not pay duty on their stake (what they bet or pay to play) or winnings.
\n\n","slug":"vat-duties","title":"VAT and duties"},{"body":"Any VAT due is already included in the price of something you buy in a shop. No tax is added when you pay.
\n\nSome shops in Northern Ireland offer tax-free shopping for visitors.
\n\nThis depends on who they’re aimed at. If they’re for:
\n\nSometimes VAT is shown on a separate line. This does not mean you’re paying extra - it just shows how much tax is included in the price.
\n\nInvoices from suppliers like builders, painters and decorators must show a separate amount for VAT and their VAT registration number.
\n\nWhen someone charges you VAT they multiply their selling price by the VAT rate to calculate the amount of VAT to charge.
\n\nThey then add this to the selling price to give you the price you actually pay - this is called the ‘gross’ price.
\n\n","slug":"where-you-see-vat","title":"Where you see VAT"},{"body":"You’ll pay a rate of either 5% or 0% VAT when certain energy-saving products are installed in your home if you’re eligible.
\n\nNot all products or installations qualify for the lower rate and you cannot buy or install them yourself.
\n\nYour installer will be responsible for charging you the correct rate of VAT.
\n\nThe rate you pay and your eligibility depends on whether you are in Great Britain (England, Scotland and Wales) or Northern Ireland.
\n\nYou’ll pay a rate of 0% VAT on both:
\n\ncertain products supplied by your installer
\nthe cost of all work to install those products in your home
\nTo be eligible for the reduced rate you must be over 60 or getting at least one of the following:
\n\nChild Tax Credit (but not the family element)
\nCouncil Tax Benefit
\nDisability Living Allowance
\nPersonal Independence Payment
\na disablement pension
\nHousing Benefit
\nJobseeker’s Allowance (income-based)
\nIncome Support
\nWar Disablement Pension
\nWorking Tax Credit
\nArmed Forces Independence Payment
\nThe rate you pay depends on how the installation costs are split.
\n\nThe total cost of installation is made up of two parts:
\n\nthe cost of the products
\nthe cost of the labour
\nIf the cost of the products (not including VAT) is 60% or less of the total cost of the installation (not including VAT), you’ll pay 5% VAT on everything.
\n\nIf the products cost more than 60% of the total cost of installation, you’ll only pay 5% VAT on the labour. You’ll pay the standard rate of 20% VAT for the products.
\n\nYour installer charges you a total of £1000 (excluding VAT) for installation – £400 for the materials and £600 for the labour. This means the value of the materials (£400) is only 40% of the total cost of installation (£1000). Your installer can charge you the reduced rate of 5% VAT on the total installation cost.
\nYour installer charges you a total of £5,385 (excluding VAT) for installation – £3,500 for the materials and £1,885 for the labour. This means the value of the materials (£3,500) is 65% of the total cost of installation (£5,385). Your installer can charge you standard 20% VAT on the materials part and 5% VAT on the labour part.
\nThe products that qualify for a lower rate of VAT are:
\n\nIn Great Britain or Northern Ireland, you’ll pay 5% VAT on heating equipment work funded through an energy efficiency grant if you’re eligible.
\n\nYou pay 20% VAT for:
\n\nIf you’re over 60, you pay a reduced rate of VAT (5%) on certain mobility aids when you pay for them to be supplied and installed in your home.
\n\nYou can get the reduced rate on:
\n\nYou do not get the reduced rate if you repair or replace the goods after they’ve been installed.
\nYou do not have to order and pay for the product yourself - a friend, local council, charity or housing association can do it for you.
\n\nYour supplier should know about the reduced rate and apply it. You qualify if:
\n\nYou’ll need to confirm to your supplier in writing that you meet these conditions. They may give you a form, or you can sign your own declaration. Ask a relative, partner or other responsible person if you’re not able to fill it in yourself.
\n\nSign and date the declaration, using this standard wording.
\n\nI [full name] of [the address where the installation is taking place] declare that I am aged 60 or over and that this supply and installation qualifies for the reduced rate of VAT in accordance with The Value Added Tax (Reduced Rate) Order 2007.
\nIf you need to adapt your home because of old age you can apply to your council for equipment or help.
\n\n","slug":"mobility-aids","title":"VAT on mobility aids"},{"body":"You can only buy tax-free goods from shops:
\n\nCheck with the retailer if they offer this service.
\n\nIf you’re visiting Northern Ireland, you may also be able to claim tax back on goods you buy from certain shops. You claim this as a VAT refund when you leave Northern Ireland or the EU.
\n\nYou can sometimes get VAT refunds on goods you buy in Northern Ireland if you:
\n\nYou can only get a VAT refund if you take the goods out of Northern Ireland and the EU within 3 months of buying them. Not all retailers offer VAT refunds.
\n\nYou will not get a VAT refund if you travel from Northern Ireland straight to Great Britain or to Great Britain through any EU country, including the Republic of Ireland.
\n\nIf you travel from Northern Ireland to Great Britain through any other country you can get a refund. But any goods you buy in Northern Ireland will count towards your tax-free personal allowances when you enter Great Britain. If you go over your personal allowances, you’ll have to:
\n\nThis may mean you have to pay VAT again on the goods you bought in Northern Ireland. But you can get a refund from the retailer if when you bought the goods you got a VAT 407(NI) form.
\n\nYou may be able to get a VAT refund if you’re only travelling to Great Britain in order to change planes. You must be travelling to a non EU country and the goods must be in your hold luggage at all times.
\n\nCheck the rules on bringing goods into Great Britain.
\n\nGet a VAT 407(NI) form from the retailer. They will ask for proof that you’re eligible, for example your passport and travel documents.
\nComplete the VAT 407(NI) form. Only include the goods you’re taking out of the country. Do not include any goods you’re leaving behind, any goods you’ve used or or any goods you’ve returned.
\nShow the goods, the completed form and your receipts to customs at the point when you leave Northern Ireland or the EU.
\nCustoms will approve your form if everything is in order.
\nTo get paid, either take your approved form to the VAT refund desk at the airport, or send it to the retailer or refund provider with evidence of where you’re travelling to.
\nIf you’re changing planes in an EU country and checking in your goods with your luggage, you must do step 3 in Northern Ireland when you check in.
\n\nIf you lose your VAT 407(NI) form, you can ask the retailer for a replacement.
\nYou can either get paid immediately at a refund booth, for example at the airport, or send the approved form to the retailer or their refund company. The retailer will tell you how you’ll get paid.
\n\nIf you’re travelling to Great Britain the retailer will tell you if you need to send them copies of your travel documents.
\n\nSome retailers charge a fee for handling your form. This money will be deducted from your refund.
\n\nIf there are no customs officials available, you can leave your form in a customs post box. Customs will check it and contact your retailer to arrange the refund if everything is in order.
\n\nYou cannot get a VAT refund for:
\n\nFind out more about claiming VAT back on tax-free shopping in Northern Ireland, including travelling to Great Britain and problems like losing your form.
\n\n","slug":"taxfree-shopping","title":"Tax-free shopping"},{"body":"Alcohol Duty is included in the price you pay for beer, cider, wine or other fermented products (previously called ‘made-wine’) and spirits. Other fermented products are any alcoholic drink made by fermentation that’s not beer, cider or wine.
\n\nTobacco Duty is included in the price you pay for cigarettes, cigars and other tobacco products.
\n\nVaping Products Duty is included in the price you pay for vaping products.
\n\nYou also pay standard rate VAT at 20% on alcohol, tobacco and vaping products.
\nHow much Alcohol Duty you pay depends on the alcohol’s strength, or ‘alcohol by volume’ (ABV), and the type of alcohol.
\n\n| Strength (ABV) | \nType of alcohol | \nRate per litre of pure alcohol | \n
|---|---|---|
| Less than 3.5% | \nBeer, still cider, wine, spirits or other fermented products | \n£9.61 | \n
| At least 3.5% but no more than 5.5% | \nSparkling cider | \n£10.02 | \n
| At least 3.5% but less than 8.5% | \nStill cider | \n£10.02 | \n
| At least 3.5% but less than 8.5% | \nBeer | \n£21.78 | \n
| At least 3.5% but less than 8.5% | \nSpirits, wine and other fermented products | \n£25.67 | \n
| More than 5.5% but less than 8.5% | \nSparkling cider | \n£25.67 | \n
| At least 8.5% but no more than 22% | \nBeer, wine, spirits or other fermented products | \n£29.54 | \n
| More than 22% | \nBeer, wine, spirits or other fermented products | \n£32.79 | \n
Example
\n\nYou buy a pack of 18 cans of 5% ABV lager (beer) at 500ml per can. The Alcohol Duty is worked out at:
\n\n18 x 500ml = 9 litres of lager.
\n\n5% (the ABV) of 9 litres = 0.45 litres of pure alcohol.
\n\n0.45 litres of pure alcohol x £21.78 (the duty rate) = £9.80 duty to pay.
\nExample
\n\nYou buy a 1 litre bottle of 40% ABV vodka (spirit). The Alcohol Duty you pay is worked out at:
\n\n1 litre of vodka.
\n\n40% (the ABV) of 1 litre = 0.4 litres of pure alcohol.
\n\n0.4 litres of pure alcohol x £32.79 (the duty rate) = £13.11 duty to pay.
\nIf you buy draught alcohol sold by a pub, bar, restaurant or other hospitality venue you may pay less duty on products below 8.5% ABV.
\n\n| Strength (ABV) | \nType of alcohol | \nRate per litre of pure alcohol | \n
|---|---|---|
| Less than 3.5% | \nBeer, spirits, wine and other fermented products | \n£8.28 | \n
| At least 3.5% but no more than 5.5% | \nSparkling cider | \n£8.63 | \n
| At least 3.5% but less than 8.5% | \nStill cider | \n£8.63 | \n
| At least 3.5% but less than 8.5% | \nBeer, spirits, wine and other fermented products | \n£18.76 | \n
| More than 5.5% but less than 8.5% | \nSparkling cider | \n£18.76 | \n
Example
\n\nYou buy 1 pint (568ml) of 5% ABV draught still cider from a pub. The Alcohol Duty you pay is worked out at:
\n\n568ml (0.568 litres) of cider.
\n\n5% (the ABV) X 0.568 litres = 0.0284 litres of pure alcohol.
\n\n0.0284 x £8.63 (the duty rate) = just over 24p per pint.
\nYou pay different rates of Tobacco Duty on cigarettes, cigars and other tobacco products.
\n\n| Tobacco product | \nRate | \n
|---|---|
| Cigarettes | \n16.5% of the retail price plus £7.88 on a packet of 20 cigarettes | \n
| Cigars | \n£5.08 on a 10g cigar | \n
| Hand rolling tobacco | \n£17.23 on a 30g packet | \n
| Other smoking tobacco (for example pipe tobacco) and chewing tobacco | \n£7.44 on a 30g packet | \n
| Tobacco for heating | \n£2.56 on a typical 6g packet of 20 sticks | \n
Vaping Products Duty is set at a single flat rate of £2.20 for a 10ml bottle on all vaping liquid.
\n\nExample
\n\nA 2ml pod will be liable to 44 pence in duty - the calculation is 2 multiplied by 22 pence, totalling 44 pence.
\n\nA 10ml refill bottle will be liable to £2.20 in duty - the calculation is 10 multiplied by 22 pence, totalling £2.20.
\nFuel Duty is included in the price you pay for petrol, diesel and other fuels used in vehicles or for heating.
\n\nYou also pay standard rate VAT at 20% on most fuel, or the reduced rate of 5% on domestic heating fuel.
\nThe rate you pay depends on the type of fuel.
\n\n| Type of fuel | \nRate | \n
|---|---|
| Petrol, diesel, biodiesel and bioethanol | \n52.95 pence per litre | \n
| Liquefied petroleum gas (LPG) | \n28.88 pence per kg | \n
| Natural gas used as fuel in vehicles, for example biogas | \n22.57 pence per kg | \n
| ‘Fuel oil’ burned in a furnace or used for heating | \n9.78 pence per litre | \n
You pay different rates on other types of fuel, depending on how they’re used.
\n\nYou may have to pay a penalty and could have your vehicle seized if you use ‘rebated’ oils like red diesel or kerosene on public roads. Report red diesel used on public roads to the Customs Hotline.
\nAirlines pay Air Passenger Duty (APD) for every passenger who flies from the UK. Ticket prices usually include a charge to cover this cost.
\n\nYou do not pay VAT on the cost of flights.
\nThe amount of APD the airline pays depends on how far away your destination is and the class you travel in.
\n\nOn commercial passenger flights the duty costs from £7 to £224 per flight. There are higher charges for some private passenger planes or charters.
\n\nThere’s no APD on long-haul flights from Northern Ireland or flights from the Scottish Highlands and Islands region.
\n\nYou can check rates for Air Passenger Duty paid by operators.
\n\nIf you do not take a flight you may be able to get a refund of anything you paid to cover APD costs.
\n\nContact your airline to see if you can get a refund. You may have to pay an administration fee.
\n\n","slug":"air-passenger-duty","title":"Air Passenger Duty"},{"body":"Insurance Premium Tax (IPT) is usually included in the price you pay for insurance.
\n\nYou do not pay VAT on insurance.
\nThe rate of IPT depends on the type of insurance and who supplies it.
\n\nThe rate is 12% on most types of insurance, including car, pet and home insurance.
\n\nThere’s a higher rate of 20% for travel insurance, and insurance arranged by the supplier (rather than an insurance company) on:
\n\nThere’s no IPT on life insurance and income protection insurance.
\n\n","slug":"insurance-premium-tax","title":"Insurance Premium Tax"}]},"document_type":"guide","first_published_at":"2012-01-23T13:52:51+00:00","links":{"available_translations":[{"api_path":"/api/content/tax-on-shopping","api_url":"https://www.gov.uk/api/content/tax-on-shopping","base_path":"/tax-on-shopping","content_id":"ca839010-1a5e-4049-93b5-577a40286701","document_type":"guide","links":{},"locale":"en","public_updated_at":"2024-10-30T17:30:03Z","schema_name":"guide","title":"Tax on shopping and services","web_url":"https://www.gov.uk/tax-on-shopping","withdrawn":false}],"mainstream_browse_pages":[{"api_path":"/api/content/browse/tax/vat","api_url":"https://www.gov.uk/api/content/browse/tax/vat","base_path":"/browse/tax/vat","content_id":"895d337a-fa68-4c83-ab79-1c08016afe87","description":"Includes online returns, rates, charging and record keeping","document_type":"mainstream_browse_page","links":{},"locale":"en","public_updated_at":"2023-03-08T14:50:05Z","schema_name":"mainstream_browse_page","title":"VAT","web_url":"https://www.gov.uk/browse/tax/vat","withdrawn":false}],"ordered_related_items":[{"api_path":"/api/content/guidance/vat-rates-on-different-goods-and-services","api_url":"https://www.gov.uk/api/content/guidance/vat-rates-on-different-goods-and-services","base_path":"/guidance/vat-rates-on-different-goods-and-services","content_id":"5ef6c7ce-7631-11e4-a3cb-005056011aef","document_type":"detailed_guide","links":{"mainstream_browse_pages":[{"api_path":"/api/content/browse/business/business-tax-returns","api_url":"https://www.gov.uk/api/content/browse/business/business-tax-returns","base_path":"/browse/business/business-tax-returns","content_id":"630c3b51-d04d-4e37-8114-9b7712bfc3e4","description":"Understand, file and pay your business taxes","document_type":"mainstream_browse_page","links":{"parent":[{"api_path":"/api/content/browse/business","api_url":"https://www.gov.uk/api/content/browse/business","base_path":"/browse/business","content_id":"2e47e500-8d91-4747-b6d8-cf6524d570f1","description":"Tools and guidance for businesses","document_type":"mainstream_browse_page","links":{},"locale":"en","public_updated_at":"2021-04-27T12:21:27Z","schema_name":"mainstream_browse_page","title":"Business and self-employed","web_url":"https://www.gov.uk/browse/business","withdrawn":false}]},"locale":"en","public_updated_at":"2026-09-15T12:24:17Z","schema_name":"mainstream_browse_page","title":"Business tax and returns","web_url":"https://www.gov.uk/browse/business/business-tax-returns","withdrawn":false}]},"locale":"en","public_updated_at":"2026-07-10T10:11:54Z","schema_name":"detailed_guide","title":"VAT rates on different goods and services","web_url":"https://www.gov.uk/guidance/vat-rates-on-different-goods-and-services","withdrawn":false},{"api_path":"/api/content/vat-building-new-home","api_url":"https://www.gov.uk/api/content/vat-building-new-home","base_path":"/vat-building-new-home","content_id":"7757ba54-161a-479a-96a2-a50420929f1a","document_type":"answer","links":{"mainstream_browse_pages":[{"api_path":"/api/content/browse/tax/vat","api_url":"https://www.gov.uk/api/content/browse/tax/vat","base_path":"/browse/tax/vat","content_id":"895d337a-fa68-4c83-ab79-1c08016afe87","description":"Includes online returns, rates, charging and record keeping","document_type":"mainstream_browse_page","links":{"parent":[{"api_path":"/api/content/browse/tax","api_url":"https://www.gov.uk/api/content/browse/tax","base_path":"/browse/tax","content_id":"71255733-af6c-4887-9991-9b288d8d431f","description":"Includes debt and Self Assessment","document_type":"mainstream_browse_page","links":{},"locale":"en","public_updated_at":"2021-04-27T12:24:51Z","schema_name":"mainstream_browse_page","title":"Money and tax","web_url":"https://www.gov.uk/browse/tax","withdrawn":false}]},"locale":"en","public_updated_at":"2023-03-08T14:50:05Z","schema_name":"mainstream_browse_page","title":"VAT","web_url":"https://www.gov.uk/browse/tax/vat","withdrawn":false}]},"locale":"en","public_updated_at":"2015-02-24T12:47:40Z","schema_name":"answer","title":"Reclaim VAT on a self build home","web_url":"https://www.gov.uk/vat-building-new-home","withdrawn":false}],"organisations":[{"analytics_identifier":"D25","api_path":"/api/content/government/organisations/hm-revenue-customs","api_url":"https://www.gov.uk/api/content/government/organisations/hm-revenue-customs","base_path":"/government/organisations/hm-revenue-customs","content_id":"6667cce2-e809-4e21-ae09-cb0bdc1ddda3","details":{"acronym":"HMRC","brand":"hm-revenue-customs","default_news_image":{"high_resolution_url":"https://assets.publishing.service.gov.uk/media/5efdb7ace90e075c58556288/s960_HMRC_sign__media_library_-_alternative__GOVUK_960.jpg","url":"https://assets.publishing.service.gov.uk/media/5efdb7ac3a6f4023cb365a65/s300_HMRC_sign__media_library_-_alternative__GOVUK_960.jpg"},"logo":{"crest":"hmrc","formatted_title":"HM Revenue