The current VAT rate in the UK is 20%, which applies to most goods and services. However, there are exceptions. A reduced rate of 5% is charged on certain items, such as domestic gas and electricity, children’s car seats, and some energy-saving materials. Some items are zero-rated (0%), meaning VAT is technically applied but at a rate of 0%. This covers most food, books, newspapers, children’s clothes, and public transport. In addition, some goods and services are completely exempt from VAT, such as financial services, insurance, health, postal services, and education.