| If you're VAT registered, it's important that your transactions have the correct tax codes against them, to ensure your VAT Return is accurate.
 TIP: This is not a definitive list. For a more comprehensive guide, or if you're unsure which tax code to use, please visit GOV.UK or contact HMRC. You can create new tax codes to suit your needs.
Sales and purchases outside the UKFor sales / purchases outside the UK, please refer to Which tax code should I use? (UK only).
Zero-rated goods and services, 0% - T0- Most foods.
- Children's clothing.
- Books, newspapers.
- Construction of new housing.
- Passenger transport.
- Prescription medicines.
Standard rated, 20% - T1- Catering services.
- Alcoholic drinks.
- Confectionery.
- Crisps / savoury snacks.
- Hot food.
- Sports drinks.
- Ice cream.
- Soft drinks / mineral water.
- eBay seller fees.
Exempt Goods and Services, 0% - T2- Some land and building sales.
- Some finance charges.
- Education and some training.
- Health.
- Betting and gaming.
- Burials and cremation.
- Postal services.
- Insurance.
Reduced rate, 5% - T5- Mobility aids for the elderly.
- Smoking cessation products - nicotine patches and gum.
- Insulation.
- Radiators.
- Electricity - charity, domestic and residential.
- Gas - charity, domestic and residential.
Non-vatable Items - T9- Wages.
- Bank or cash transfers.
- PAYE and NI contributions.
- Capital.
- Loans, dividends and gifts of money.
Reverse charge items - T20- Wholesale supplies of telecommunications services.
- Mobile phones in certain circumstances.
- Computer chips in certain circumstances.
- Emissions allowances.
If you haven't found what you're looking for, try using our Which tax code should I use? (UK only) or refer to HMRC's guide on VAT rates on different goods and services. [BCB:149:Move feedback:ECB]
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