The standard VAT rate is 20%

VAT rates for goods and services

% of VAT 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

The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%).

Some things are exempt from VAT , such as postage stamps, financial and property transactions.

The VAT rate businesses charge depends on their goods and services.