VAT registration threshold and rates 2026/27
The £90,000 registration threshold, the deregistration limit, the standard, reduced and zero rates, and how the rolling twelve-month test works.
- 2026/27 tax year, reviewed 2nd September 2026
- Figures from HMRC and the Treasury
- Updated automatically when rates change
- £90,000Registration threshold
- £88,000Deregistration threshold
- 20%Standard rate
What changed from 2025/26 to 2026/27
| Item | 2025/26 | 2026/27 | Change |
|---|---|---|---|
| Registration threshold | £90,000 | £90,000 | No change |
| Deregistration threshold | £88,000 | £88,000 | No change |
| Standard rate | 20% | 20% | No change |
Full rates and thresholds
Everything for 2026/27 in one place.
VAT rates
| Rate | % | Examples |
|---|---|---|
| Standard | 20% | Most goods and services |
| Reduced | 5% | Domestic fuel, children's car seats, some renovations |
| Zero | 0% | Most food, books, children's clothes, exports |
| Exempt | n/a | Insurance, finance, education, health, most rent |
Worth knowing
- Registration is compulsory when taxable turnover in any rolling twelve months exceeds the threshold, or when you expect to exceed it in the next 30 days alone.
- You have 30 days from the end of the month you crossed the threshold to notify HMRC; registration takes effect from the first day of the second month after.
- Zero-rated sales count towards the threshold; exempt sales do not.
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Frequently asked questions
What is the VAT threshold for 2026/27?
£90,000 of taxable turnover in any rolling twelve-month period, unchanged since April 2024. Deregistration is possible below £88,000.
How do I remove VAT from a price?
Divide by 1.2 for the standard rate (or by 1.05 for the reduced rate). Subtracting 20% gives the wrong answer.