A Complete Guide to VAT Codes: the Full List

20.0 % S

Standard rate for VAT. If your business is VAT registered, you must charge VAT at the standard rate on all goods and services unless they come under another category.

Before selecting any rate other than standard, check the HMRC website to find out the exact details on which VAT rate applies to any specific circumstances

VAT at 20% to Box 1

Net Sale to Box 6

VAT at 20% to Box 4

Net Purchase to Box 7

Exempt

Exempt VAT rate. Some goods and services are completely exempt from VAT.

These include:

– Certain services from doctors and dentists – Certain types of education and training – Insurance – although there is an Insurance Premium Tax (IPT) that may apply

No VAT

Net Sale to Box 6

No VAT

Net Purchase to Box 7

5.0 % R

Reduced rate VAT. A reduced rate of VAT applies to certain goods and services including:

– Smoking cessation products like nicotine patches – Mobility aids – Children’s car seats, booster seats and booster cushions – Insulation

The reduced rate may only apply in specific situations or it may depend on who the customer is.

VAT at 5% to Box 1

Net Sale to Box 6

VAT at 5% to Box 4

Net Purchase to Box 7

0.00% Z

Zero rate VAT. Some goods and services are taxable for VAT but the VAT rate is zero percent. The zero rate may only apply in specific situations or it may depend on who the customer is.

Some examples include: – Low vision aids – Printing of brochures/leaflets – Babywear – Motorcycle helmets

VAT at 0% to Box 1

Net Sale to Box 6

VAT at 0% to Box 4

Net Purchase to Box 7

No VAT

Outside the scope of VAT. Some goods and services are outside the scope of VAT and are not reported on a VAT return.

This covers anything:

– Sold or supplied when you’re not registered for VAT and you don’t need to register for VAT – Bought or sold outside the EU – Bought and sold for your own personal use such as interests – Sold or otherwise supplied but not as part of your business such as if you sometimes receive an income from hobbies

Other examples of goods and services outside the scope of VAT include:

– Low-cost welfare services provided by charities – Charity donations given by a business when the donor doesn’t receive anything in return – Tolls for bridges, tunnels and roads managed by public authorities – Statutory fees and services – e.g. Congestion charge and MOT testing.

N/A

N/A

20.0% RC SG

Default reverse charge VAT for services.

N/A

+/- VAT at 20% to Box 1 & 4

+/- Net Purchase to Box 6 & 7

20.0% RC MPCCs

Reverse charge

for the purchase of mobile phones and computer chips.

N/A

+/- VAT at 20% to Box 1 & 4

Net Purchase to Box 7

20.0%ECG

Intra EU B2B purchase of goods.

In business to business transactions, the customer must pay for any VAT due via the reverse charge mechanism. The customer has to act as though they are both the supplier and recipient of goods.

N/A

+/- VAT at 20% to Box 2 and 4+/- Net

Purchase to Box 7 and 9

20.0% ECS

Intra B2B of services.

In business to business transactions, the customer must account for any VAT due using the reverse charge mechanism. The customer must behave as though they are both the supplier and recipient of the services.

N/A

+/- VAT at 20% to Box 1 & 4+/- Net

Purchase to Box 6 & 7

0.0% ECS

Intra EU B2B Supply of Services. This is used for Intra EU business to business sale of services.

If the EU customer isn’t VAT registered, the applicable UK VAT rate is charged.

It’s essential to note the place of supply on services.

– For B2B, the place of supply is where the receiver of services is based (customer). – For B2C (business to consumer), the place of supply is where the provider is based (business).

Net Sale to Box 6

+/- VAT at 0% to Box 1 & 4

+/- Purchase to Box 6 & 7

0.0% RC

Intra EU Reverse Charge.

This is used for Intra EU B2B transactions on mobile phone and computer chips.

Net Sale to Box 6

N/A