Rates & Fractions (VAT)

Last Updated: 11 September 2018

What is the VAT rate?

What is the VAT fraction?

How do I calculate VAT?

The standard rate of VAT is:

20% from 4/1/2011

17.5% from 1/1/2010 to 3/1/2011

15% from 1/12/2008 to 31/12/2009

17.5% up until 30/11/2008

 

The reduced rate:

5%



The Zero rate:

0%

The rate for exempt supplies:

No VAT is charged

The rate of VAT charged depends on:

1. The type of supply: whether it is a supply of goods or services

2. The Place of Supply: which is determined by:

a) working out whether the supply is from business to business or business to customer. 

b) deciding whether it is within the general rules or covered by any exemptions.

See Place of supply: services and Place of supply: goods

3. The nature of the supply: whether the supply is:

  • Outside the scope of VAT
  • Exempt
  • Zero rated
  • Reduced rated
  • Standard rated

See HMRC rates on different goods and services

 

Standard rate VAT fraction

If you need the VAT fraction to work out the VAT on a gross (VAT inclusive total).

VAT rate

Fraction

Example

15%

3/23

£100 + VAT @ 15% = £115

So,

£115 x 3/23 = £15

17.5%

7/47

£100 + VAT @17.5% = £117.50

So,

£117.50 x 7/47 = £17.5
20% 1/6

£100 + VAT @20% = £120

So,

£120/6= £20