VAT and Sales Tax Rates in United Kingdom for 2024

United Kingdom VAT Rate

18.00%

About £18 tax on a £100 purchase

Exact tax amount may vary for different items

The current United Kingdom VAT (Value Added Tax) is 18.00%.

The VAT is a sales tax that applies to the purchase of most goods and services, and must be collected and submitted by the merchant to the United Kingdom governmental revenue department.

Of the thirty four countries tracked, twenty one have a higher maximum VAT rate then United Kingdom.Countries with similar VAT rates include Netherlands with a VAT of 19%, Greece with a VAT of 19% and Chile with a VAT of 19%.

VAT/Sales Tax	Reduced VAT Rate	World VAT Rank
18%	None	22nd of 34

United Kingdom VAT Refund For Visitors

Visitors to United Kingdom may be able to get a refund of the United Kingdom VAT tax paid on any goods bought for deportation. To get a VAT refund, you must present receipts for the goods purchased (and possibly proof of your deportation of the goods) to a United Kingdom VAT refund station (which are often found in airports, tourist offices, or international travel hubs).

Some localities have a minimum purchase price for which a VAT refund can be claimed, or certain purchase types which cannot be made tax-free. A VAT refund of up to 18.00% of your total expenditures may be refunded for qualifying purchases. Regulations on VAT and sales tax refunds vary across countries and by region, so be sure to check ahead before expecting a United Kingdom VAT refund.

United Kingdom VAT Law For Businesses and Merchants

Businesses in United Kingdom are required to collect a sales tax of 18.00% on behalf of the government, which they must submit to the applicable United Kingdom revenue department in a periodical VAT tax return. Unlike the United States' sales tax, which is only charged on sales to end consumers, the VAT is collected on all sales - even of raw materials.

Businesses may be required to register for a United Kingdom VAT number or other identifier to enable the government to track and verify VAT tax returns. VAT collection is a responsibility of the merchant, and failure to collect and submit the appropriate tax amounts may result in severe penalties.