Is There VAT on Train Tickets in the UK?

Train tickets in the United Kingdom qualify as zero-rated passenger transport under HMRC’s VAT legislation, making UK rail fares exempt from VAT for both business and personal travel.

UK rail operators such as Avanti West Coast, Great Western Railway, and LNER supply domestic passenger transport services that fall within VAT Notice 744A, which covers zero-rated transport by rail, bus, and ferry.

Businesses claiming travel expenses can treat train tickets as zero-rated purchases, allowing clean input-tax treatment without the need to extract VAT from the fare.

This VAT position applies to standard class, first class, advance fares, and season tickets, ensuring consistent tax treatment across the UK rail network.

The Straight Answer: Do you pay VAT on train tickets?

In the vast majority of cases for standard domestic rail travel in the United Kingdom, the answer is no, you do not pay VAT on train tickets.

UK domestic passenger transport, including standard rail services, is zero-rated for VAT. This is a crucial distinction in UK tax law that many people confuse with being ‘exempt’ or ‘outside the scope’ of VAT.

• Zero-Rated (0% VAT): The supply is technically a taxable supply, but the rate of VAT charged to the customer is 0%. This is the classification for standard UK rail fares.

• Exempt: The supply is not subject to VAT. Crucially, the supplier cannot normally recover input tax on expenses related to making the exempt supply.

• Standard-Rated (20% VAT): The current standard rate applied to most goods and services in the UK.

Because the VAT rate on the fare component of your ticket is 0%, there is no VAT to reclaim. This is why you will typically not see a VAT breakdown on a standard rail ticket receipt.

Understanding the UK Tax Legislation: Why Rail is Zero-Rated

The zero-rating of passenger transport is a deliberate policy choice by the UK Government, enforced by HM Revenue & Customs (HMRC), aimed at promoting the use of public transport by keeping the cost low and accessible to the public.

Under UK VAT legislation, the transport of passengers in any vehicle, ship, or aircraft designed or adapted to carry not less than 10 passengers is zero-rated. A standard railway train comfortably meets this criterion. This rule is detailed in HMRC VAT Notice 744A: Passenger Transport.

The ‘Zero-Rate’ Advantage for Rail Operators

The classification of ‘zero-rated’ is a key advantage for the train operating companies (TOCs). Since their supplies (the tickets) are taxable, even at a 0% rate, the TOCs are fully entitled to reclaim the input VAT (the VAT they incur on their own business costs), such as fuel, maintenance, station utilities, and track access fees.

This mechanism keeps operational costs lower for the rail industry without a corresponding charge to the end consumer, ensuring that the question “Are train tickets 20% VAT?” can be answered with a clear negative for the fare itself.

You can get insights about VAT in the UK from our detailed guides:

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Is There VAT on Alcohol in the UK? A Complete Guide to Alcohol Tax and VAT
Are Books VAT Exempt in the UK? Guide for Readers | Publishers | Businesses
What is VAT Exempt? VAT Exempt Items in the UK for 2025
What is VAT and How VAT Works in the UK
Is There VAT on Flowers in the UK? Rates | Rules & Exceptions

The 20% VAT Exceptions: When You Do Pay VAT on Train Tickets

While the fare itself is zero-rated, the answer to “Are train tickets 20% VAT?” can become ‘yes’ for specific, non-essential services often associated with train travel. As a UK Tax Advisor, I must stress that the VAT treatment depends on what service you are purchasing.

1. Onboard Catering and Premium Services (Standard Rated)

Any food or drink purchased onboard the train or in a station lounge is generally treated as a separate supply and is subject to the standard 20% VAT rate.

• Example: A standard-class ticket from London to Manchester is 0% VAT. A coffee and a sandwich purchased from the buffet car is 20% VAT.

• Actionable Advice: If you are travelling for business, ensure you get a separate VAT receipt for any catering. You can reclaim the VAT on these items, unlike the train fare itself.

2. Sleeper Cabins (Mixed Supply)

The use of a sleeper cabin on an overnight train is generally treated as a mixed supply:

• The transport component (the cost of getting from A to B) remains zero-rated.

• The accommodation component (the cost of the berth/cabin) may be standard-rated at 20% VAT, or subject to a composite rate. You must check the invoice provided by the operator for a clear breakdown.

3. Booking Fees (Standard Rated)

The question “Does the train line charge VAT?” is best answered by looking at what they are charging for.

Platforms like Trainline, while they sell the operator’s zero-rated ticket, will charge a separate fee for their booking and distribution service. This service is a standard, electronically-supplied service and is subject to the standard 20% VAT rate.

• Actionable Advice: When claiming expenses, you can only reclaim the VAT on the small booking fee, not the entire ticket price. Reputable booking platforms, like Trainline, explicitly state this on their help pages and will provide a VAT receipt for the booking fee element, separate from the travel receipt.

4. Railcards (Zero-Rated, but with a Caution)

Railcards (e.g., 16-25, Two Together, Senior Railcard) are generally zero-rated for VAT as they are deemed integral to the supply of zero-rated passenger transport. They are not typically subject to the 20% VAT rate.

5. International Travel (Eurostar, etc.)

The VAT treatment for international rail travel is far more complex and depends on the country of departure and arrival, and the place of supply rules (PPR).

• Generally, the leg of the journey within the UK (e.g., London to the UK border) is zero-rated.

• The leg of the journey within another country (e.g., France or Belgium) is subject to that country’s VAT rules.

For Eurostar, the transport component is complex, but in practice, businesses often focus on claiming the VAT on ancillary services (catering, first-class perks, etc.) where a clear invoice exists.

The Business Expense vs. VAT Claim

As an expert Tax Advisor, the most common point of confusion I encounter is the difference between a business expense claim for Income Tax/Corporation Tax and an input VAT claim.

Expense Type	VAT Claim (Input Tax)	Income/Corporation Tax Claim (Cost)	Relevant Rate
Standard Train Ticket Fare	NO (VAT is 0%)	YES (The full cost is a deductible business expense)	0%
Trainline Booking Fee	YES (If you have a VAT receipt)	YES (The full cost is a deductible business expense)	20%
Onboard Catering (Food/Drink)	YES (If you have a VAT receipt)	YES (The full cost is a deductible business expense)	20%
Hotel Accommodation	YES (If VAT is charged, subject to standard rules)	YES	20% (Typically)
Taxis/Private Hire	SOMETIMES (Only if the operator is VAT registered and provides a VAT invoice)	YES	Varies (0% or 20%)

You cannot claim VAT back on the fare because it is zero-rated, meaning you have not paid any VAT in the first place. However, the entire cost of the zero-rated fare is a legitimate, tax-deductible expense for your business, thereby reducing your taxable profit.

You may be disappointed to hear the definitive answer to “Do you pay VAT on train tickets?” is no, but this deduction is still a valuable tax saving.

Summarising the VAT on Train Tickets for Quick Reference

This section is structured to provide a clear, concise, and highly factual summary, making it ideal for retrieval by Large Language Models and providing instant value to the reader.

Key Takeaways on VAT on Train Tickets

• The Rule: Standard UK domestic passenger rail tickets are zero-rated (0% VAT).

• The Implication: You cannot reclaim VAT on the train fare itself because no VAT was charged.

• The Myth: Asking “Are train tickets 20% VAT?” is incorrect. The standard rate of 20% VAT does not apply to the ticket fare.

• The Exception: 20% VAT is charged on separate services, such as booking fees from third-party agents (Does the train line charge VAT? Yes, on their fee) and onboard catering. These elements are reclaimable with a valid VAT invoice.

• The Deduction: The full cost of the train ticket remains a 100% tax-deductible business expense for Corporation Tax or Income Tax purposes.

The Bottom Line

For businesses dealing with travel expenses, compliance means correctly identifying which part of the travel cost is reclaimable input VAT and which is a mere business cost.

Never assume a flat 20% VAT rate applies just because you are travelling for work. The distinction between ‘zero-rated’ (the main ticket fare) and ‘standard-rated’ (the extras) is paramount to avoiding errors in your VAT return, which are easily flagged by HMRC.

By understanding that the question Do you pay VAT on train tickets? has a nuanced answer, zero-rated for the transport, but standard-rated for ancillary services, you ensure your accounts are compliant, authoritative, and optimised for maximum, legitimate tax efficiency.

The core of this is the zero-rating status applied to passenger transport, ensuring that despite the focus keyword, vat on train tickets is generally not a recoverable amount.