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Do I need to charge VAT? (UK checker)

You only charge VAT if you’re VAT registered. Then the rate depends on what you sell and where your customer is. Answer four questions to see what to charge.

£90,000registration threshold
20%standard rate
5% / 0%reduced / zero
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What to charge
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VAT rate to charge

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    General information only. Not tax advice. Some products have special rules: check GOV.UK’s VAT rates guide for your exact item.

    When you need to charge VAT

    • Only if you’re VAT registered. If you’re not registered you must not charge VAT or show it on invoices.
    • You must register once your taxable turnover goes over £90,000 in any rolling 12 months, or if you expect it to in the next 30 days alone. Check with our VAT threshold calculator.
    • Once registered, you charge VAT on everything you sell that isn’t exempt or outside the scope of VAT, at the rate that applies to each item.

    UK VAT rates at a glance

    RateExamples
    20% standardMost goods and services, adult clothing, restaurant meals, hot takeaway food, alcohol, software, private school fees (since 1 January 2025)
    5% reducedDomestic gas and electricity, children’s car seats
    0% zeroMost food to take home, children’s clothes and shoes, books and e-books, sanitary products, passenger transport in vehicles with 10 or more seats, energy-saving materials installed in homes (until 31 March 2027)
    ExemptInsurance, most financial services, medical care by registered professionals, education by eligible bodies, residential lettings, postage stamps

    Zero-rated and exempt both mean no VAT on the sale, but they’re different. Zero-rated sales count toward the £90,000 threshold and let you reclaim VAT on costs. Exempt sales don’t. More in our guide does zero-rated VAT count toward the threshold?

    Selling to customers outside the UK

    • Goods exported outside the UK are usually zero-rated, as long as you keep proof they left the UK. The customer may pay import VAT in their country.
    • Services to overseas businesses are usually outside the scope of UK VAT: the customer accounts for any VAT where they are (the reverse charge).
    • Digital services to EU consumers are taxed at the customer’s country’s rate from the first sale. See VAT on digital services: UK ↔ EU.

    FAQ

    Do I need to charge VAT if I’m self-employed?

    Only if you’re VAT registered. Most sole traders don’t have to register until their taxable turnover goes over £90,000 in a rolling 12 months, so many never charge VAT.

    Do I have to charge VAT once I’m registered?

    Yes, on all your sales that aren’t exempt or outside the scope of VAT, at the right rate for each item, including to customers who aren’t VAT registered themselves.

    Should I add VAT to my invoice?

    Only if you’re VAT registered. Then you must show the VAT and your VAT number on the invoice. If you’re not registered, invoice one total price with no VAT.

    Do I charge VAT to customers in other countries?

    Usually not on goods you export (they’re zero-rated) or on services to overseas businesses (the reverse charge applies). Digital services to EU consumers are the main exception: EU VAT is due from the first sale.

    Official guidance