UK VAT Rates Explained

The Four VAT Rates

The UK has four VAT categories:

Standard Rate (20%)

Applies to most goods and services. This is the default rate in Invoify.

Reduced Rate (5%)

Applies to specific goods and services including home energy, children's car seats, and sanitary products.

Zero Rate (0%)

The item is VAT-taxable but at 0%. Includes most food items, children's clothing, books, and newspapers.

Exempt (0%)

Not subject to VAT at all. Includes insurance, financial services, education, and health services.

Setting VAT in Invoify

When adding products or line items to an invoice, select the appropriate VAT rate from the dropdown. Invoify calculates the VAT amount automatically.