Solution Properties
Solution ID:
200427112556485
Last Modified Date:
Wed Mar 23 14:28:07 UTC 2022
Taxonomy Path:
Case category//How do I...//governmental/legislative compliance
Author:
david.price1@sage.com
VAT rates for popular goods and services
Description

If you're VAT registered, it's important that your transactions have the correct VAT rates (Standard/Education/Professional) against them, to ensure your VAT Return is accurate.

Here we have a few examples of which VAT rates to use. This is not a definitive list. If the goods or services don't appear in these lists or you're unsure which VAT rate to use, please visit https://www.gov.uk/guidance/rates-of-vat-on-different-goods-and-services or contact HMRC. If requred, you can create new VAT rates (Standard/Education/Professional) to suit your needs.

Cause
Resolution
Sales and puchase outside the UK

For sales and purchases to countries outside the UK, please use our VAT Code Finder.

Zero rated goods and services, 0%
  • Most foods.
  • Children's clothing.
  • Books, newspapers.
  • Construction of new housing.
  • Passenger transport.
  • Medicines on prescription.
Standard rated, 20%
  • Catering services.
  • Alcoholic drinks.
  • Confectionery.
  • Crisps and savoury snacks.
  • Hot food.
  • Sports drinks.
  • Ice cream.
  • Soft drinks and mineral water.
  • Electricity - businesses (in some cases 5%).
  • Gas - businesses (in some cases 5%).
  • eBay seller fees.
Exempt Goods and Services, 0%
  • 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%
  • 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
  • Wages.
  • Bank or cash transfers.
  • PAYE and NI contributions.
  • Capital.
  • Loans, dividends and gifts of money.
Reverse charge items
  • 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 out VAT Code Finder or refer to HMRC's guide on VAT rates on different goods and services.

 

[BCB:19:UK - Sales message :ECB]
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