VAT – standard rate

The current standard rate of VAT is 20%.

Any sales of standard-rated goods or services that you made on or after 4 January 2011 you must charge VAT at 20% rate. If you have a cash business and calculate your VAT using the VAT fraction you must use the VAT fraction of 1/6 on your standard-rated VAT inclusive sales from 4 January 2011.

The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions. Any sales you make at these rates are unaffected by this change.

Please be aware that there are new changes for submitting VAT returns to HMRC in 2019 – through the Making Tax Digital scheme. If your company is already registered for VAT or will earn over £85,000 by March 2019 you should fall into this scheme. For more information please take a look at