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.
CAUTION: This is not a definitive list. For a more comprehensive guide, or you're unsure which tax code to use, please visit https://www.gov.uk/guidance/rates-of-vat-on-different-goods-and-services or contact HMRC. If required, you can create new tax codes to suit your needs.
New import tax codes
- For more information on these new tax codes - Read more >
- For more information about Brexit, please visit our Brexit hub.
Sales and purchases outside the UK
For sales and purchases to countries outside the UK, please use our Which tax code should I use? - from 1 January 2021 (UK only).
- Most foods.
- Children's clothing.
- Books, newspapers.
- Construction of new housing.
- Passenger transport.
- Medicines on prescription.
- Catering services.
- Alcoholic drinks.
- Crisps and savoury snacks.
- Hot food.
- Sports drinks.
- Ice cream.
- Soft drinks and mineral water.
- Electricity - businesses (in some cases 5% - T5).
- Gas - businesses (in some cases 5% - T5).
- eBay seller fees.
- Some land and building sales.
- Some finance charges.
- Education and some training.
- Betting and gaming.
- Burials and cremation.
- Postal services.
- Mobility aids for the elderly.
- Smoking cessation products - nicotine patches and gum.
- Electricity - charity, domestic and residential.
- Gas - charity, domestic and residential.
- Bank or cash transfers.
- PAYE and NI contributions.
- 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.
Reduced rate on hospitality, holiday accommodation and attractions
You can find out more on how to process the reducted rate in our dedicated guide. Read more >
If you haven't found what you're looking for, try using our Which tax code should I use? - from 1 January 2021 (UK only) or refer to HMRC's guide on VAT rates on different goods and services.
|This article provides general rather than specific guidance to assist all of our customers. We always do our best to make sure that the information is correct but as it's general guidance, no guarantees can be made concerning its suitability for your particular needs. The information is valid at the time of publishing and is provided without any warranty of any kind, express or implied. You should take professional advice if you require specific guidance on your individual circumstances, for example to ensure that the results obtained from using our software comply with statutory or regulatory requirements. For VAT, customs and excise and duties enquiries you should call the HM Revenue and Customs (HMRC) National Advice Service Helpline on 0300 200 3700, contact your local HMRC office or visit their website at www.hmrc.gov.uk In no event will we be liable to you for any direct, indirect, consequential or incidental loss or damage arising out of or in connection with your use of the information provided.
The VAT or tax codes used in this article are based on the default or recommended codes set up in the software. These may be different in your software.