VAT Atlas · entry № 31 · current as of April 2026
🇬🇧
of Great Britain and Northern Ireland
United Kingdom
Non-EU · Pound sterling · code GBStandard VAT rate, reduced categories, registration thresholds, and e-invoicing rules for United Kingdom.
Standard rate
20%
Reduced 5% domestic energy, child car seats, sanitary products
Zero-rated 0% food, books, newspapers, children’s clothing, exports
Threshold 90 000 GBP £90,000 rolling 12 months
Filing Quarterly
§ Invoicing rules what you need to know
Tax authority HM Revenue & Customs (HMRC)
Invoice language English
Reverse charge Domestic reverse charge applies to construction services (CIS reverse charge) and supplies of mobile phones, computer chips, and wholesale gas/electricity. Post-Brexit, reverse charge no longer applies to EU trade.
Digital services B2C digital services to UK consumers are taxed at 20%. Non-UK suppliers must register for UK VAT if turnover to UK consumers exceeds the distance selling threshold. The UK has its own digital services scheme separate from the EU OSS.
Penalties New points-based penalty system since 2023: each late return earns a point; at threshold (4 points for quarterly filers) a £200 penalty applies. Late payment incurs interest at Bank of England base rate plus 2.5%.
Invoice requirements
- Sequential invoice numbering required
- Seller’s VAT registration number must be shown
- Invoice must include date of supply (tax point) and date of issue
- MTD for VAT: digital records and quarterly submissions via compatible software mandatory
- Invoices must be stored for 6 years
Frequently Asked Questions
What is the standard VAT rate in United Kingdom?
The standard VAT rate in United Kingdom is 20%.
What are the reduced VAT rates in United Kingdom?
5% (Reduced): applies to domestic energy, child car seats, sanitary products.
What is the VAT registration threshold in United Kingdom?
The VAT registration threshold in United Kingdom is 90 000 GBP. £90,000 rolling 12 months
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