Introduction

If you’re registered, you have to charge VAT when you make taxable supplies.

What qualifies and the VAT rate you charge depends on the type of goods or services you provide.

No VAT is charged on goods or services that are:

exempt from VAT

outside the scope of the UK VAT system

This guide to goods and services and their VAT rates is not a complete list. You can see a full list of VAT notices for goods and services not included in this guide.

VAT rate conditions

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 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

whether they’re provided with other goods and services

Other conditions may also apply.

There are also specific VAT rules for certain trades such as builders and charities that affect how you account for VAT, how much you must pay and how much you can reclaim.

International trade

Goods exported outside the UK and the EU, or sent to someone registered in an EU country are zero-rated, subject to conditions. You can read more about VAT on goods sent overseas.

Food and drink, animals, animal feed, plants and seeds

Food and drink for human consumption is usually zero-rated but some items are always standard-rated. These include catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.

Restaurants must always charge VAT on everything eaten either on their premises or in communal areas designated for their customers to use, such as shared tables in a shopping centre or airport food courts.

In addition, restaurants and takeaway vendors must charge VAT on all hot takeaways and home deliveries, but do not need to charge VAT on cold takeaway food unless it’s to be eaten in a designated area.

Certain animals, animal feeding products, plants and seeds also qualify for the zero rate, but only if the conditions in the following VAT notices are met, however products packaged as pet food are standard-rated.

Find out more about:

food and drink in VAT Notice 701/14

catering and take-away food in VAT Notice 709/1

animals and animal feed in VAT Notice 701/15

plants and seeds in VAT Notice 701/38

Sport, leisure, culture and antiques

Sport

Goods or services VAT rate More information Physical education and sports activities Exempt VAT Notice 701/45

Leisure

Goods or services VAT rate More information Betting and gaming – including pool betting and games of chance Exempt VAT Notice 701/29 Bingo – including remote games played on the internet, telephone, television or radio Exempt VAT Notice 701/29 Lottery ticket sales Exempt VAT Notice 701/29 Online lottery games Exempt VAT Notice 701/29 Retailer commission on lottery ticket sales Exempt VAT Notice 701/29

Culture

Goods or services VAT rate More information Admission charges by public authorities or eligible cultural bodies to certain cultural events such as visits to museums, art exhibitions, zoos and performances Exempt VAT Notice 701/47

Antiques

Goods or services VAT rate More information Antiques, works of art or similar (as assets of historic houses) sold by private treaty to public collections Exempt VAT Notice 701/12 Antiques, works of art or similar (as assets of historic houses) used to settle a tax or estate duty debt with HMRC Exempt VAT Notice 701/12

Health, education, welfare and charities

Charities

Welfare

Health

Education

Goods or services VAT rate More information Education, vocational training and other connected services provided by an eligible body like a school, college or university Exempt VAT Notice 701/30

Power, utilities, energy and energy saving, heating

Power

Goods or services VAT rate More information Electricity for domestic and residential use or for non-business use by a charity 5% Fuel for business use is usually standard-rated – VAT Notice 701/19 Gas for domestic and residential use or for non-business use by a charity 5% Fuel for business use is usually standard-rated – VAT Notice 701/19 Heating oil for domestic and residential use or for non-business use by a charity 5% Fuel for business use is usually standard-rated – VAT Notice 701/19 Solid fuel for domestic and residential use or for non-business use by a charity 5% Fuel for business use is usually standard-rated – VAT Notice 701/19

Utilities

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

Energy-saving materials installed in dwellings and buildings used for a relevant residential purpose

Heating equipment and connection of gas supply (to the extent they are grant-funded by certain funders to people aged over 60 or who are in receipt of certain benefits)

Building and construction, land and property

Building and construction

Land and property

Goods or services VAT rate More information Garages or parking spaces let together with dwellings (under shorthold tenancy agreements) 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

Transport

Goods or services VAT rate More information Aircraft repair and maintenance 0% VAT Notice 744C

Freight

Goods or services VAT rate More information Domestic leg of freight transport to or from a place outside the UK and the EU 0% Standard-rated freight transport includes domestic freight transport and freight transport between the UK and an EU member state – VAT Notice 744B Freight containers – sale, lease or hire to a place outside the UK and the EU 0% VAT Notice 703/1 Freight containers – sale, lease or hire to an EU member state 0% VAT Notice 703/1 International freight transport that takes place in the UK and its territorial waters 0% VAT Notice 744B

Travel

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 10 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 – VAT Notice 700

Vehicles

Printing, postage, publications – books, magazines and newspapers

Printing

Postage

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, for example, 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 Public postal services provided by the Royal Mail under a universal service obligation Exempt Standard Royal Mail first and second class services for example Other postal services that are not subject to a universal service obligation Standard-rated Supplies that are not subject to regulation

Publications

Goods or services VAT rate More information Babywear 0% VAT Notice 714 Children’s clothes and footwear 0% VAT Notice 714

Protective and safety equipment

Financial services and investments, insurance

Financial services and investments

Insurance