In the United Kingdom, VAT is called Value Added Tax —VAT— and is administered by HMRC, the British tax authority. It has a standard rate of 20%, a reduced rate of 5%, and a zero rate that covers most food, children’s clothing, and books. These are set by the Value Added Tax Act 1994: section 2 for the standard rate, section 29A and Schedule 7A for the reduced rate, and sections 30 and Schedule 8 for the zero rate. The 20% rate has been in force since 4 January 2011, when it rose from 17.5%.
| Rate | Percentage | Applies to |
|---|---|---|
| Standard (standard rate) | 20% | Most goods and services, by default: adult clothing and footwear, pushchairs and prams, and, within food, sweets, salty snacks, ice cream, soft drinks, mineral water and alcohol; also pet food |
| Reduced (reduced rate) | 5% | Child car seats, boosters and carrycots with harnesses, nicotine patches and gum, and gas, heating oil and domestic electricity (electricity at 0% in Great Britain from 1 October 2026 to 31 March 2027) |
| Zero (zero rate) | 0% | Most food, children’s clothing and footwear, books, newspapers, magazines and maps, menstrual hygiene products, approved cycle and motorcycle helmets, and exports |
Rates verified on 11 September 2026 against HMRC’s guidance “VAT rates on different goods and services” (gov.uk).
The UK zero rate, and what changes in 2026
What sets the United Kingdom apart is a very broad zero rate: most food, children’s clothing and footwear, books and newspapers, menstrual hygiene products and cycle helmets are taxed at 0%. The boundaries are fine-grained: within food, sweets, salty snacks, ice cream, soft drinks and mineral water are taxed at 20%, as is pet food.
In 2026 there are two temporary rates. From 25 June to 1 September, inclusive, children’s menus, children’s tickets to cinemas, theatres and shows, and tickets to certain family attractions dropped from 20% to 5%; that measure has already ended. And from 1 October 2026 to 31 March 2027, domestic electricity will move from 5% to 0% in Great Britain, not in Northern Ireland.
What does affect you is customs. On 13 July 2026 the Government confirmed that the duty-free allowance for shipments up to £135 will disappear no later than October 2028, six months earlier than announced, and it expects the duty to be paid by the seller or the marketplace. Nothing has been decided yet about VAT on those shipments: it is still charged at the point of sale.
What happens with VAT when you sell from Spain to the United Kingdom
The United Kingdom is outside the EU, so for Great Britain there is no one-stop shop or €10,000 threshold. A shipment from Spain —or from any other EU country— to a customer in Great Britain is an export: it leaves VAT-free, provided you keep proof that the goods have left the EU, such as transport documents and proof of exit. What happens next depends on the value of the shipment and the destination:
- Shipments up to £135 to Great Britain (England, Scotland and Wales): UK VAT is not charged at customs, but at the point of sale. If you sell directly to consumers, you charge it yourself at the rate that applies to the product and declare it to HMRC, which requires you to be registered there from the first sale. If you sell through a marketplace, the marketplace collects and remits it. If the customer is a business that gives you its UK VAT number, you do not charge VAT: they account for it under reverse charge.
- Shipments over £135 to Great Britain: the normal import rules apply. Import VAT and any duties that apply according to the product type and origin are paid at customs, and unless otherwise agreed the customer pays them to the courier before receiving the parcel.
- Northern Ireland follows EU VAT rules for goods: a shipment there is not an export, but a distance sale that counts towards the €10,000 threshold. Below that, your country’s VAT applies; above it, UK VAT, which you can declare through the one-stop shop.
The £135 limit is measured per complete shipment, not per item, and excluding transport and insurance when these are listed separately on the invoice. It does not apply to alcohol, tobacco and other excise goods, or to gifts between private individuals.
How to prepare a WooCommerce store to sell to the United Kingdom
For Great Britain there is no threshold to monitor, but there are three things the standard setup does not handle on its own:
- A 0% tax class for exports, for orders to Great Britain where you do not charge UK VAT. Northern Ireland is not a separate country in WooCommerce —it is included under “United Kingdom (UK)”—, so separate it by postcode: EU rules apply there.
- What the customer sees before paying. For shipments over £135 to Great Britain, if you sell DAP the parcel arrives with any import VAT and duties due, and the customer pays them to the courier: make that clear on the product page and at checkout. If you sell DDP, import clearance and all related costs are your responsibility, and the price must absorb them.
- UK VAT registration if you sell shipments up to £135 directly to private customers in Great Britain, using the rate for each product —20%, 5% or 0%. WooCommerce applies rates by country, postcode and tax class, not by order value, so the £135 cutoff has to be handled separately.
For sales to businesses in Great Britain, EHERO Woo VAT validates the customer business’s UK VAT number against HMRC and, if it is valid, treats the transaction as VAT-free.
Selling to UK businesses from WooCommerce?
EHERO Woo VAT checks your business customers’ UK VAT number against HMRC and, if it is valid, leaves the sale without VAT on the order.
Frequently asked questions
What is the standard VAT rate in the United Kingdom in 2026?
20%, in force since 4 January 2011, when it rose from 17.5%. Alongside it there is a reduced rate of 5% and a zero rate, and all three apply throughout the country, including Northern Ireland. The 2026 changes are temporary and specific: the summer 5% rate for family leisure and children’s menus, and the 0% rate for domestic electricity in Great Britain from October.
Is Northern Ireland treated the same as the rest of the United Kingdom?
Not for VAT on goods. Northern Ireland applies UK rates, but for goods it follows EU VAT rules: a shipment from Spain is not an export, but a distance sale that counts towards the €10,000 threshold. Below that, Spanish VAT applies; above it, UK VAT, declared through the one-stop shop.
I sell from Spain to the United Kingdom, what VAT should I charge?
To Great Britain, no Spanish VAT: it is an export. For shipments up to £135 sold directly to private customers, you charge UK VAT yourself: 20%, 5% or 0% depending on the product. Above that, VAT is paid on import and, unless you sell DDP, the customer pays it to the courier before receiving the parcel. Northern Ireland follows EU rules.
Do I need to register in the United Kingdom?
Yes, if you sell directly to private customers in Great Britain shipments up to £135 or goods already in the United Kingdom: without an establishment there, there is no threshold and registration is required from the first sale. No, if you only sell to businesses with a UK VAT number. If everything goes to private customers through a marketplace, you can request the exemption. For Northern Ireland, the one-stop shop is enough.
Continue here
- VAT rates by EU country in 2026 — the full table for all 27
- VAT in Ireland 2026 · VAT in France 2026
- The €10,000 threshold for distance sales
