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Find the right tax code

Created on  | Last modified on 

Summary

This guide explains what tax code to use for sales of goods abroad when you don't have proof of exportation.

Description

Based on the information you've given us, we recommend you use the same tax code you would use in the UK depending on the VAT rate you're applying.

 

Standard rate - 20%

Which tax code to use T1
How this affects your VAT Return

Standard and VCA schemes:

The tax amount appears in box 1.
The net amount appears in box 6.

Flat rate schemes:

The flat rate percentage of the gross amount appears in box 1.
The gross amount appears in box 6.

Reduced rate -  5%

Which tax code to use T5
How this affects your VAT Return

Standard and VCA schemes:

The tax amount appears in box 1.
The net amount appears in box 6.

Flat rate schemes:

The flat rate percentage of the gross amount appears in box 1.
The gross amount appears in box 6.

Zero rated - 0%

Which tax code to use T0
How this affects your VAT Return

Standard and VCA schemes:

The net amount appears in box 6.

Flat rate schemes:

The flat rate percentage of the gross amount appears in box 1.
The gross amount appears in box 6.

Exempt -  0%

Which tax code to use T2
How this affects your VAT Return

Standard and VCA schemes:

The net amount appears in box 6.

Flat rate schemes:

The flat rate percentage of the gross amount appears in box 1.
The gross amount appears in box 6.

 TIP: Unsure which rate to apply? Read more >

 

 

This article offers general guidance only. While accurate at the time of publication, it may not suit your specific needs. We make no express or implied warranties. For tailored advice, consult a professional. For VAT, customs, or duties queries, contact HMRC on 0300 200 3700 or visit www.hmrc.gov.uk. We accept no liability for any loss from using this content. VAT or tax codes shown reflect default software settings and may differ in your setup.