|Rate||% of Vat||What the rate applies to|
|Standard||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, eg postage stamps, financial and property transactions.
The VAT rate businesses charge depends on their goods and services.
Check the rates of VAT on different goods and services.