If you're VAT registered, it's important that your transactions use the correct tax codes, to ensure your VAT Return is accurate.  TIP: This isn't a definitive list. For a more comprehensive list, or if you're unsure which tax code to use, visit GOV.UK or contact HMRC. You can create new tax codes to suit your needs.
Sales and purchases outside the UK For 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] [BCB:44:Accounts VAT disclaimer:ECB]
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