As of 7 November 2026, clothing designed for young children and suitable only for them is zero-rated for UK VAT, while adult clothing carries the standard 20%. HMRC judges this mainly by published garment measurements, based on children up to the eve of their 14th birthday. The zero rate concerns VAT only; customs duty is a separate matter, and under the UK–India CETA garments of Indian origin have paid 0% duty since 15 July 2026, with proof of origin.
The four conditions
HMRC’s VAT Notice 714, last updated on 28 October 2022, allows a supply to be zero-rated only when all four conditions are met. The item must:
- be an article of clothing or footwear;
- not be made of fur;
- be designed for young children only;
- be suitable for young children.
“Clothing” covers all the obvious garments and also hats, caps, belts and scarves. It does not cover accessories and haberdashery sold separately, such as buckles, buttons, zips, badges and patches, or head items such as hair ribbons, alice bands and headbands. Articles made wholly or partly of fur skin are standard-rated, although articles made with artificial fur may qualify if the other conditions are met. A baby’s shawl counts as clothing if it is designed and held out as such, but a “mother-and-baby” shawl intended to wrap around both mother and child is standard-rated.
The notice is written for those who design, manufacture and sell children’s clothing, whether as wholesaler or retailer, so the same test governs how you treat your own sales. Its section 5 deals with suitability and with what “held out for sale” means; read it before you rely on the zero rate.
Size limits, larger sizes and one-size garments
HMRC accepts a garment as designed for young children if it is at or within these measurements. Measure it on a flat surface, with creases smoothed out, buttons or equivalent fastened and any intended overlap in place.
| Garment | Measured at | Girls: up to | Boys: up to |
|---|---|---|---|
| Dresses | Chest | 98cm | Not applicable |
| Skirts | Waist | 71cm | Not applicable |
| Shirts | Chest | 105cm | 104cm |
| Knitwear | Chest | 105cm | 104cm |
| Jackets, waistcoats | Chest | 110cm | 109cm |
| Trousers, shorts | Waist | 71cm | 72cm |
| Nightwear | Chest | 106cm | 105cm |
Chest is measured 2.5 centimetres below the base of the armhole and multiplied by 2. Waist is measured from one side of the fastened waistband to the other and multiplied by 2. Elasticated waistbands on skirts, trousers and shorts are measured at full stretch, and those with no fastening may be zero-rated up to a maximum stretched waist of 90cm for girls and 85cm for boys. Saris (422cm × 104cm) and lungis (156cm × 94cm) have their own limits. The table has no line for kaftans, so check with your customs broker which measure applies to them.
A garment above these limits may still qualify, but only with HMRC’s written agreement in advance. You must show, with full specifications and reasoning, that it is designed to fit a body size no larger than the notice sets out (for girls: height 161cm, chest 85cm, waist 69cm, hips 90cm; for boys: height 163cm, chest 84cm, waist 70cm, hips 85cm) and that some other design feature restricts it to those under 14.
One-size garments need particular care. An article sold in one size only and suitable for both children and adults cannot be zero-rated, which is worth checking on any free-size kaftan or scarf. Articles that stretch to fit can be zero-rated as long as they are designed to fit a body size within the limits above.
What the zero rate does not change
VAT and duty are decided separately, and a garment that passes the size test still needs proof of origin for the 0% duty. These rates were verified on 1 November 2026. The duty figures are listed by garment type, fibre and construction, not by age group, so check with your customs broker that they fit your children’s line.
| At UK import, from India | Adult garment | Qualifying young children’s garment |
|---|---|---|
| VAT | 20% | Zero-rated |
| Duty with proof of Indian origin | 0% | 0% |
| Duty without proof of origin | 12% (8% on woven scarves) | 12% (8% on woven scarves) |
On adult garments, import VAT is worked out on the customs value plus the duty. A UK VAT-registered importer can use postponed VAT accounting: nothing is paid at the border, and the import VAT is declared and reclaimed on the same VAT Return, so the net cost is nil. No approval is needed; tell your broker you want PVA. For that importer, the zero rate therefore does not change the net cost of import VAT. If a shipment mixes adult and children’s lines, check with your customs broker how to show them.
The 0% duty comes from the UK–India CETA, signed on 24 July 2025 and applying from 15 July 2026. The garment must originate in India: the rule is a change of tariff heading plus a minimum Indian value content. The shipment needs a proof of origin, either an origin declaration by the exporter on the invoice or a certificate of origin issued in India.
Check your own garment
Measure the garment against the table above, then run the line through the calculator.
We manufacture women’s dresses, kaftans, skirts and scarves in India and send the certificate of origin with the documents for every shipment that qualifies: Talk to us about your range.
Sources
Indicative information from official sources, written 7 November 2026. Rates verified on against the official tariffs. It is not a customs ruling; confirm with your customs broker before you rely on it.
Developing a womenswear range? See how we work as a ladies garments manufacturer in India.
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