What are VAT rates?

Second reduced rate of VAT

The second reduced rate of Value-Added Tax (VAT) applies only to certain goods and services, including:

periodicals
certain e-periodicals. This excludes:
- those which wholly or predominantly are devoted to advertising
- or
- consist wholly or predominantly of audio or video content.

the provision, by a person other than a non-profit making organisation, of facilities for taking part in sport.
the supply of electricity[1]
the supply of gas used for domestic or industrial heating or lighting, whether in gaseous or liquid form.[1] This excludes:
- vehicle gas
- liquefied petroleum gas for use as a propellant
- gas for welding or cutting metal
- and
- gas sold as lighter fuel[1]

the supply and construction until completed of qualifying apartments and apartment blocks.[2]
catering and restaurant supplies (excluding alcohol, soft drinks and bottled water)[3]
hot take-away food, and hot tea and coffee[3]
hairdressing services[3]

[1] The second reduced rate applies for the period from 01 May 2022 to 31 December 2030.

[2] The second reduced rate applies with effect from 26 November 2025 to 31 December 2030.

[3] The second reduced rate applies with effect from 01 July 2026. From 01 September 2023 to 30 June 2026, the reduced rate applies.

For the period from 08 October 2025 to 25 November 2025, the supply of certain qualifying apartments is subject to the second reduced rate.

For the period from 01 November 2020 to 31 August 2023, the following supplies are subject to the second reduced rate of VAT:

catering and restaurant supplies (excluding alcohol, soft drinks and bottled water)
hot take-away food, and hot tea and coffee
hotel lettings, for example, guesthouses, caravan parks or camping sites
admissions to cinemas, theatres, certain musical performances, museums, art galleries or exhibitions
amusement services of the kind normally supplied in fairgrounds or amusement parks
admission to an open farm
hairdressing services
and
certain printed matter such as brochures, leaflets, catalogues or printed music (excluding books).

From 01 September 2023, the reduced rate of VAT applies to the above supplies.