In this section:
- VAT rates explained: standard, reduced, zero, exempt
- Rates of VAT on different goods and services
- VAT rates, thresholds, fuel scale charges, exchange rates
- Calculating VAT for VAT-inclusive and VAT-exclusive prices
- Trade sectors with special VAT rates, rules or concessions
- Increase in the standard VAT rate
Rates of VAT on different goods and services
If you're registered for VAT and you make VAT taxable supplies you'll have to charge VAT on them. Normally you charge VAT at the standard rate, unless the goods or services you are selling, and the circumstances in which you're selling them, mean you are allowed to charge a different rate.
There are different rates of VAT, depending on the type of goods or services your business provides. At the moment there are three different rates. They are:
- standard rate - see below
- reduced rate - 5 per cent
- zero rate - 0 per cent
Standard rate is:
- 17.5 per cent up to and including 30 November 2008
- 15 per cent from 1 December 2008 to 31 December 2009
- 17.5 per cent from 1 January 2010 until further notice
There are also some goods and services that are:
- exempt - so no VAT is charged on them
- outside the scope of the UK VAT system altogether
This guide lists certain goods and services that are reduced-rated,
zero-rated, exempt or outside the scope of VAT. It's not a complete
list.
On this page:
- Different goods and services - and their VAT rate
- Sport, leisure, culture and antiques
- Health, education, welfare and charities
- Power, utilities, energy, heating and insulation
- Building and construction, land and property
- Transport, freight, travel and vehicles
- Printing, postage, publications, books, magazines and newspapers
- Clothing, footwear, protective and safety equipment
- Financial services, investments and insurance
Different goods and services - and their VAT rate
The following sections list different goods and services that are reduced-rated, zero-rated, exempt or outside the scope of VAT. These rates may only apply if certain conditions are met, or in particular circumstances, depending on some or all of the following:
- who's providing them or buying them
- where they're provided
- how they're presented for sale
- the precise nature of the goods or services
- whether you obtain the necessary evidence
- whether you keep the right records
Other conditions may also apply.
Before using anything other than the standard rate you should study the technical documentation carefully to find out what rate of VAT applies in any particular set of circumstances.
If you need more help with deciding on the right rate of VAT to charge you can contact HM Revenue & Customs (HMRC) for advice.
Contact HMRC to check the VAT rate is right
There are also specific VAT rules that apply to certain trades that affect how you account for VAT, and how much VAT you must pay and can reclaim.
Find out more about special VAT rules for different trade sectors
Find out more about different VAT rates
Food and drink, animals, animal feed, plants and seeds
Food and drink for human consumption is, in general, zero-rated but many items are standard-rated, including alcoholic drinks, confectionery, crisps and savoury snacks, food for catering or hot takeaways, ice cream, soft drinks and mineral water.
Because certain food and drink is zero-rated, so too are certain animals and animal feeds, and plants and seeds - if the animal or plant in question is normally used for human consumption.
More about food and drink in VAT Notice 701/14
More about animals and animal feed in VAT Notice 701/15
More about plants and seeds in VAT Notice 701/38
International trade
Goods exported outside the EU or to someone registered in another EU country are zero-rated, subject to conditions.
More about VAT on goods sent overseas
Sport, leisure, culture and antiques
| Goods or services | VAT rate | More information |
|---|---|---|
| Physical education and sports activities | exempt | VAT Notice 701/45 |
| Goods or services | VAT rate | More information |
|---|---|---|
| Betting and gaming - including pool betting and games of chance | exempt | VAT Notice 701/26 |
| Bingo - including remote games played on the Internet, telephone, television or radio | exempt | VAT Notice 701/27 |
| Lottery ticket sales | exempt | VAT Notice 701/28 |
| Online lottery games | exempt | VAT Notice 701/28 |
| Retailer commission on lottery ticket sales | exempt | VAT Notice 701/28 |
| Goods or services | VAT rate | More information |
|---|---|---|
| Admission charges by public authorities or eligible cultural bodies to cultural events | exempt | VAT Notice 701/47 |
| Goods or services | VAT rate | More information |
|---|---|---|
| Antiques, works of art or similar sold by private treaty to public collections | exempt | VAT Notice 701/12 |
| Antiques, works of art or similar used to settle a tax or estate duty debt with HMRC | exempt | VAT Notice 701/12 |
Health, education, welfare and charities
| Goods or services | VAT rate | More information |
|---|---|---|
| Admission charges by charities | exempt | How VAT applies to charities |
| Advertising services for charities | 0% | VAT Notice 701/58 |
| Certain goods sold at charitable fundraising events | 0% | Charity fund-raising events and VAT |
| Charitable fundraising events | exempt | Charity fund-raising events and VAT |
| Charity shops - selling donated goods | 0% | Charitable donations
and VAT |
| Construction and sale of new buildings for a charitable purpose | 0% | VAT Notice 708 |
| Energy saving materials installed in residential or charity premises | 5% | Energy saving materials - supply only - are standard-rated VAT Notice 708/6 |
| Sponsored charitable events | exempt | Charities and
VAT |
| Voluntary donations to charity | outside the scope of VAT | Donations to charities |
| Goods or services | VAT rate | More information |
|---|---|---|
| Building services for disabled people | 0% | Building services
for disabled people |
| Burial or cremation of dead people, or burial at sea | exempt | VAT Notice 701/32 |
| Mobility aids for the elderly | 5% | Mobility aids for older people |
| Equipment for blind or partially sighted people | 0% | Equipment for blind or partially sighted people |
| Equipment for disabled people | 0% | Equipment for disabled people |
| Funeral plans written under contracts of insurance | exempt | VAT Notice 701/36 |
| Smoking cessation products - nicotine patches and gum | 5% | Read Budget Note BN77 (PDF 42K) |
| Welfare services provided by charities at significantly below cost | outside the scope of VAT | VAT Notice 701/1 |
| Talking books and vision aids for blind people | 0% | Aids for blind people |
| Goods or services | VAT rate | More information |
|---|---|---|
| Care or medical treatment provided by a qualifying institution like a hospital, hospice or nursing home | exempt | VAT
Notice 701/31 |
| Dispensing of prescriptions by a registered pharmacist | 0% | VAT Notice 701/57 |
| Health services provided by registered doctors, dentists, opticians, pharmacists and other health professionals | exempt | VAT Notice 701/57 |
| Incontinence products | 0% | VAT Notice 701/7 |
| Maternity pads | 5% | VAT Notice 701/18 |
| Sanitary protection products | 5% | VAT Notice 701/18 |
| Low vision aids | 0% | Equipment for blind or partially sighted people |
| Goods or services | VAT rate | More information |
|---|---|---|
| Education, training or other services provided by an eligible body like a school or college | exempt | VAT Notice 701/30 |
Power, utilities, energy and energy saving, heating
| Goods or services | VAT rate | More information |
|---|---|---|
| Electricity for domestic and residential use | 5% | Fuel for business use is standard-rated VAT Notice 701/19 |
| Gas for domestic and residential use | 5% | Fuel for business use is standard-rated VAT Notice 701/19 |
| Heating oil for domestic and residential use | 5% | Fuel for business use is standard-rated VAT Notice 701/19 |
| Solid fuel for domestic and residential use | 5% | Fuel for business use is standard-rated VAT Notice 701/19 |
| Goods or services | VAT rate | More information |
|---|---|---|
| Cesspools, septic tanks or similar (domestic) - emptying | 0% | Emptying industrial cesspools, septic tanks or similar is
standard-rated VAT Notice 701/16 |
| Sewerage services supplied to domestic or industrial customers | 0% | Sewer and drain cleaning, unblocking or maintenance is standard-rated VAT Notice 701/16 |
| Water supplied to households | 0% | Water supplied to industrial customers is standard-rated VAT Notice 701/16 |
| Goods or services | VAT rate | More information |
|---|---|---|
| Air source heat pumps (installation) | 5% | VAT Notice 708/6 |
| Boilers - wood fuelled (installation) | 5% | VAT Notice 708/6 |
| Central heating controls (installation) | 5% | VAT Notice 708/6 |
| Draught stripping (installation) | 5% | VAT Notice 708/6 |
| Energy saving materials installed in residential or charity premises | 5% | Energy saving materials - supply only - are standard-rated VAT Notice 708/6 |
| Insulation (installation) | 5% | Insulation - supply only - is standard-rated VAT Notice 708/6 |
| Micro combined heat and power units | 5% | VAT Notice 708/6 |
| Solar panels (installation) | 5% | Solar panels - supply only - are standard-rated VAT Notice 708/6 |
| Water turbines (installation) | 5% | Water turbines - supply only - are standard-rated VAT Notice 708/6 |
| Wind turbines (installation) | 5% | Wind turbines - supply only - are standard-rated VAT Notice 708/6 |
| Goods or services | VAT rate | More information |
|---|---|---|
| Heating appliances - grant-funded installations | 5% | VAT Notice 708/6 |
| Ground source heat pumps (installation) | 5% | VAT Notice 708/6 |
| Hot water system controls (installation) | 5% | VAT Notice 708/6 |
| Micro combined heat and power units | 5% | VAT Notice 708/6 |
| Wood fuelled boilers (installation) | 5% | Wood fuelled boilers - supply only - are standard-rated VAT Notice 708/6 |
Building and construction, land and property
| Goods or services | VAT rate | More information |
|---|---|---|
| Altering an empty residential building | 5% | VAT Notice 708 |
| Approved alterations to a listed building or scheduled monument | 0% | VAT Notice 708 |
| Building services for disabled people | 0% | Building services
for disabled people |
| Construction and sale of new buildings for a charitable purpose | 0% | VAT Notice 708 |
| Construction and sale of new buildings for communal residential purposes | 0% | VAT Notice 708 |
| Construction and sale of new domestic buildings | 0% | VAT Notice 708 |
| Converting premises into different living accommodation | 5% | VAT Notice 708 |
| Renovating an empty residential building | 5% | VAT Notice 708 |
| Security items - grant-funded installations | 5% | VAT Notice 708/6 |
| Goods or services | VAT rate | More information |
|---|---|---|
| Garages or parking spaces let together with buildings for permanent residential use | exempt | Garages or facilities specially designed for parking are
standard-rated VAT Notice 742 |
| Parking - grant, or licence, to occupy land on which incidental parking takes place | exempt | VAT Notice 742 |
| Property, land and buildings - grant, or licence, to occupy land or buildings | exempt | VAT Notice 742 |
| Sale or long lease of a new dwelling with garage or parking space | 0% | VAT Notice 708 |
Transport, freight, travel and vehicles
| Goods or services | VAT rate | More information |
|---|---|---|
| Aircraft repair and maintenance | 0% | VAT Notice 744C |
| Goods or services | VAT rate | More information |
|---|---|---|
| Domestic leg of freight transport to or from a place outside the EU | 0% | Standard-rated freight transport includes domestic freight transport
and freight transport between the UK and another EU member State VAT Notice 744B |
| Freight containers - sale, lease or hire to a place outside the EC | 0% | VAT Notice 703/1 |
| Freight containers - sale, lease or hire to another EC Member State | 0% | VAT Notice 703/1 |
| International freight transport that takes place in the UK and its territorial waters | 0% | VAT Notice 744B |
| Goods or services | VAT rate | More information |
|---|---|---|
| Houseboat moorings | exempt | VAT Notice 742 |
| Parking spaces or garages supplied with houseboat moorings | exempt | VAT Notice 742 |
| Passenger transport in a vehicle, boat or aircraft that carries not less than ten passengers | 0% | VAT Notice 744A |
| Tolls for bridges, tunnels and roads operated by public authorities | outside the scope of VAT | Privately-operated tolls for bridges, tunnels and roads are
standard-rated Update 1 to VAT Notice 700 |
| Goods or services | VAT rate | More information |
|---|---|---|
| Aircraft repair and maintenance | 0% | VAT Notice 744C |
| Airships - sale or charter | 0% | VAT Notice 744C |
| Caravans (more than 7m long or more than 2.3m wide) | 0% | VAT Notice 701/20 |
| Civil aeroplanes - sale or charter | 0% | Gliders - sale or charter - are standard-rated as are hot
air balloons VAT Notice 744C |
| Helicopters - sale or charter | 0% | VAT Notice 744C |
| Houseboats - sale or let out on hire | 0% | But holiday accommodation let in a moored houseboat is standard-rated VAT Notice 701/20 |
| Military aeroplanes - sale or charter | 0% | VAT Notice 744C |
| Ship repairs and maintenance | 0% | VAT Notice 744C |
| Shipbuilding - 15 tons or over gross tonnage | 0% | VAT Notice 744C |
Printing, postage, publications - books, magazines and newspapers
| Goods or services | VAT rate | More information |
|---|---|---|
| Brochures | 0% | VAT Notice 701/10 |
| Leaflets | 0% | VAT Notice 701/10 |
| Pamphlets | 0% | VAT Notice 701/10 |
| Goods or services | VAT rate | More information |
|---|---|---|
| Direct-mail postal services meeting all the conditions of VAT Notice 700/24 3.2 and 3.3 | outside the scope of VAT | VAT Notice 700/24 |
| Postage, packing and delivery within the UK included in the sales contract but charged for separately, eg mail order | the same rate as the goods being delivered or posted | Postage, packing and delivery within the UK charged as an optional
extra is always standard-rated VAT Notice 700/24 |
| Postage stamps - UK and Isle of Man (unused stamps only) | exempt | Foreign postage stamps, used stamps, and unused stamps in pre-decimal
currency denominations are standard-rated VAT Notice 701/8 |
| Postal services supplied by Royal Mail or other licensed Postcomm operator | exempt | VAT Notice 700/24 |
| Goods or services | VAT rate | More information |
|---|---|---|
| Books | 0% | VAT Notice 701/10 |
| Children's painting and picture books | 0% | VAT Notice 701/10 |
| Maps and charts | 0% | VAT Notice 701/10 |
| Magazines | 0% | VAT Notice 701/10 |
| Newspapers | 0% | VAT Notice 701/10 |
| Printed or copied music | 0% | VAT Notice 701/10 |
| Publications | 0% | Some items are standard-rated such as exercise books, letterheads, posters |
Clothing and footwear, protective and safety equipment
| Goods or services | VAT rate | More information |
|---|---|---|
| Baby wear | 0% | VAT Notice 714 |
| Children's clothes and footwear | 0% | VAT Notice 714 |
| Goods or services | VAT rate | More information |
|---|---|---|
| Carrycots with restraint straps | 5% | VAT Notice 701/23 |
| Children's car seats, booster seats and booster cushions | 5% | VAT Notice 701/23 |
| Children's safety seats with bare wheeled framework | 5% | Prams and pushchairs are standard-rated VAT Notice 701/23 |
| Cycle helmets - CE marked | 0% | VAT Notice 701/23 |
| Motorcycle helmets that meet safety standards | 0% | VAT Notice 701/23 |
| Protective boots and helmets for industrial use | 0% | VAT Notice 701/23 |
Financial services and investments, insurance
| Goods or services | VAT rate | More information |
|---|---|---|
| Financial services like loans or credit | exempt | VAT Notice 701/49 |
| Gold investment coins | exempt | VAT Notice 701/21 |
| Goods or services | VAT rate | More information |
|---|---|---|
| Friendly Society subscriptions for the provision of insurance | exempt | VAT Notice 701/36 |
| Insurance services | exempt | VAT Notice 701/36 |
| Insurance services transactions | exempt | VAT Notice 701/36 |
| Insurance supplied as a separate element but with other goods or services | exempt | VAT Notice 701/36 |
| Insurance supplied as part of a single supply with other goods or services | exempt if insurance is the principal element of the supply | VAT Notice 701/36 |
