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Which tax code should I use? - (UK only)

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Summary

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

Description

There are a number of complexities in relation to VAT and the purchase of services. Because of this, you must first establish the VAT liability of the supply. For help with this please contact the HMRC National Advice Service Helpline on 0300 200 3700, contact your local HMRC office or visit their website at www.hmrc.gov.uk

Once HMRC have confirmed how the service should be treated, or if you already know the VAT liability, based on that information, we recommend you use one of the following tax codes:

Treat as a UK purchase - Standard rate - 20%

Which tax code to useT1
How this affects your VAT Return

Standard and VCA schemes:

The tax amount appears in box 4.
The net amount appears in box 7.

Flat rate schemes:

This does not affect your VAT Return.

Supplier is not VAT registered - 0%

Which tax code to useT0
How this affects your VAT Return

Standard and VCA schemes:

The net amount appears in box 7.

Flat rate schemes:

This does not affect your VAT Return.

Service is outside the scope of UK VAT

Which tax code to useT9
How this affects your VAT ReturnThis does not affect your VAT Return.

 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.