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Which tax code should I use? - from 1 January 2021 (UK only)

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Summary

This guide explains what tax code to use for sales of services from the UK to abroad.

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.

NOTE: If you’re unsure of the tax treatment for a particular transaction please refer to the place of supply rules or contact HMRC.

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.

Zero rate - 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.

VAT 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.

Outside the scope of UK VAT

Which tax code to use T9
How this affects your VAT Return

This doesn't affect the VAT Return.
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.