UK VAT rates
| Rate | Applies to |
|---|---|
| 20% standard | Most goods and services |
| 5% reduced | Domestic energy, children’s car seats, some energy-saving installations |
| 0% zero | Most food, children’s clothes, books and newspapers |
How to remove VAT
To remove 20% VAT, divide the gross price by 1.2. Don’t subtract 20%: taking 20% off £120 gives £96, but the real net price is £100.