UK VAT Rates in 2026: A Complete Guide
Current UK VAT Rates
The UK operates four VAT rate categories, unchanged since 2011:
| Rate | Percentage | Examples |
|---|---|---|
| Standard | 20% | Most goods and services |
| Reduced | 5% | Home energy, children's car seats |
| Zero-rated | 0% | Most food, children's clothes, books |
| Exempt | 0% | Insurance, financial services, education |
Standard Rate (20%)
The default rate applied to most goods and services. If you're unsure which rate applies, it's likely standard rate.
When to Register for VAT
You must register for VAT if your taxable turnover exceeds £90,000 in any 12-month period (threshold as of April 2024). You can also register voluntarily below this threshold.
Invoify and VAT
Invoify comes pre-configured with all four UK VAT rates. When creating invoices, simply select the appropriate tax rate for each line item. The system calculates VAT automatically and ensures your invoices meet HMRC requirements.