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Find the right tax code

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Summary

This guide explains what tax code to use for sales of goods to the UK when you don't charge VAT.

Description

Based on the information you've given us, we recommend you use the following tax codes depending on the VAT rate you're applying.

Zero rated

Which tax code to useT0
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

Which tax code to useT2
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 >


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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.