Is there VAT on Train Tickets? Here’s the Straight Answer

Wondering if you can claim VAT on your train tickets? If you travel for work, it’s important to know how train fares are treated under UK VAT rules, especially if you’re logging them for your return. Here’s everything that you need to know! 

Key Takeaways

• Train tickets in the UK are zero-rated for VAT, so no VAT is charged and there’s nothing to reclaim.

• You can still deduct the full cost as a business expense when calculating your tax bill.

• Extras like onboard food or sleeper cabins may include VAT, but only if charged separately and supported by a VAT invoice.

Are Train Tickets Subject to VAT in the UK?

Train tickets in the UK are zero-rated for VAT. That means VAT technically applies, but at a 0% rate, so you won’t see any VAT added to the price.

This applies to most standard and first-class domestic train travel. So, while train fares are classed as taxable supplies, no VAT is actually charged, and there's nothing to reclaim on your VAT return.

However, some extras, like onboard catering or sleeper cabins, may be charged at the standard 20% VAT rate, depending on the provider.

RELATED: Is there VAT on Uber? A Guide for UK Drivers & Businesses

For business owners and freelancers, train travel is still a valid business expense, and you can deduct the full cost when working out your income or corporation tax. Just don’t expect a VAT refund on the ticket itself.

Can You Reclaim VAT on Train Travel?

No. You can’t reclaim VAT on UK train tickets, because they’re zero-rated. That means VAT technically applies, but at a rate of 0%, so there’s nothing to reclaim.

This applies to most standard and first-class domestic train fares.

However, if you pay for extras like onboard catering or sleeper cabins, these may be charged at the standard 20% VAT rate. If you get a valid VAT invoice for those, you may be able to reclaim the VAT on just those specific items.

What We Think

It doesn’t make much sense that train tickets are taxed at 0% but still count as taxable. For business owners and freelancers, that just makes the VAT rules feel more confusing than they need to be. The fact that people still ask “is there VAT on train tickets?” shows how unclear the rules can be.

In our opinion, rules like this slow people down. You’re doing your best to stay organised, but when some travel has VAT and some doesn’t, it’s easy to make mistakes or waste time trying to figure it out.

How JAFA Can Help

VAT rules can be confusing especially when not all business expenses work the same way. JAFA’s AI-powered bookkeeping helps small business owners and freelancers record expenses accurately and keep everything organised for tax time.

By combining automation with expert support, JAFA helps users avoid common VAT mistakes, even when the rules are inconsistent. And when it’s time to plan ahead, JAFA’s insights make it easier to understand how your spending affects your tax position.

Contact our expert accountants based in Birmingham, UK, either by booking a FREE discovery call or calling us on +44 121 227 6277.