October 16, 2026

Businesses, accountants and micro-entity owners ask this question constantly: “Is there VAT on train tickets?” The short answer is no. In the UK, passenger train fares are zero-rated for VAT — no VAT is charged on standard tickets, advance fares, season tickets or railcards, so there is nothing for a business to reclaim on the fare itself. But the exceptions matter: on-board catering, third-party booking fees and certain international journeys are treated differently. This guide explains how HMRC treats passenger transport for VAT (Notice 744A), what businesses can and cannot claim, and how VAT applies to the other travel costs around the ticket. The short answer: no VAT on UK train fares Standard, advance, season and first-class fares: zero-rated (0% VAT) Discounted, child and railcard fares: zero-rated too — the rate does not change by passenger type On-board food and drink bought separately: usually standard-rated (20% VAT) Third-party booking or administration fees: often standard-rated, even though the ticket is not London Congestion Charge and ULEZ: outside the scope of VAT entirely Why are train fares zero-rated for VAT? Under Group 8 of Schedule 8 to the VAT Act 1994, explained in HMRC’s VAT Notice 744A, domestic passenger transport is zero-rated when the vehicle is designed or adapted to carry 10 or more passengers, including the driver and crew. Every scheduled UK train comfortably meets that test, so the full fare is supplied at 0% VAT. Zero-rated is not the same as exempt. Zero-rated supplies are still taxable supplies — just taxed at 0% — which means train operators can reclaim the VAT they pay on their own costs such as fuel, maintenance and rolling stock, instead of passing it on to passengers. Exempt businesses cannot reclaim input VAT in the same way. For you as a passenger or employer, the practical result is simple: the ticket price contains no VAT. Does the class of travel change the VAT treatment? No. First-class fares, standard fares, season tickets, advance tickets, off-peak returns and railcard-discounted tickets are all zero-rated. The zero-rating applies to the transport, not the passenger, so a child’s ticket carries no more VAT than a full-price adult fare. Where first-class passengers do meet VAT is on the extras sold around the journey: food and drink bought on board, paid-for first-class lounge access and other premium add-ons are separate supplies and are usually charged at the standard 20% rate. When VAT does apply to train travel These are the situations where VAT can appear alongside a train journey: On-board catering — sandwiches, hot food, tea, coffee and alcohol sold on board are standard-rated supplies, separate from the fare. Booking and administration fees — third-party websites and corporate travel agents may add VAT to their service fees, even though the ticket itself is zero-rated. Keep the invoice: a VAT-registered business can reclaim this VAT. Lounges and extras — paid first-class lounge access and similar add-ons usually carry 20% VAT. Transport bundled with admission — where a train ride is ancillary to an admission ticket, for example a ride forming part of a theme-park or attraction entry, the whole supply can be standard-rated. International legs — the rules change once the journey leaves the UK (see the Eurostar section below). Can a business claim VAT back on train tickets? There is no VAT on the fare, so there is nothing to reclaim on the ticket itself — even for VAT-registered businesses. What you can reclaim: VAT charged on third-party booking or admin fees, with a valid VAT invoice; VAT on on-board catering bought for a business journey, with a receipt showing the VAT; VAT on other VAT-bearing travel costs, covered in the next section. If you are unsure whether a supplier’s invoice is reclaimable, our guide to finding a VAT number for a company explains how to check they are genuinely VAT-registered. What VAT can businesses reclaim on other travel expenses? For VAT-registered businesses, the position on common journey costs is: Accommodation — hotels, B&Bs and guesthouses charge 20% VAT, which is reclaimable. Taxi and private-hire fares — reclaimable where the operator is VAT-registered and provides a VAT receipt. Many are not, so check before you claim. Parking fees — VAT is reclaimable where a valid VAT receipt is issued. See our full guide on VAT on car parking. Fuel — VAT on fuel for a company car is reclaimable; where employees use their own cars, VAT can be reclaimed on the fuel element of the mileage claim. Congestion Charge and ULEZ — no VAT at all. The London Congestion Charge (currently £18 a day, from 2 January 2026) is a statutory levy that sits outside the scope of VAT — neither zero-rated nor exempt — so there is no VAT to reclaim. TfL’s Congestion Charge page has the current charge. Road tolls — tolls set by public authorities are outside the scope of VAT; privately operated tolls are usually standard-rated. Car hire and leasing — where a hired car is used for both business and private motoring, only 50% of the VAT can be reclaimed. For a fuller walkthrough of the rules, see our guide to claiming expenses as a limited company. Is there VAT on Eurostar and international train travel? The UK leg of an international rail journey is zero-rated, just like a domestic fare. Beyond the UK, the VAT treatment follows each country’s rules — Eurostar tickets for the French or Belgian legs are taxed under those countries’ regimes. If you buy the whole journey from a UK supplier, the UK portion of the fare remains zero-rated. Zero-rated vs exempt: why the distinction matters on your VAT return It matters most to the operator, not the passenger — zero-rating lets train companies recover the VAT on their costs, which is one reason fares are not loaded with tax. For your business, the distinction is worth knowing when completing a VAT return: zero-rated purchases still count as taxable supplies at 0% and are recorded accordingly, whereas exempt supplies are entered