VAT and duties

VAT is a tax you pay on most goods and services.

Rate % of VAT What the rate applies to
Standard 20% Most goods and services
Reduced rate 5% Some goods and services, for example children’s car seats and some energy-saving materials in the home
Zero rate 0% Zero-rated goods and services, for example most food and children’s clothes

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.

VAT is normally included in the price you see in shops, but there are some exceptions.

VAT and disabled people

You 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.

Other taxes and duties

You pay different taxes on:

Airlines have to pay air passenger duty for every flight from the UK. Most airline tickets include a separate charge to cover this cost.

Gambling 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.