Introduction
If you’re registered for VAT, 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 that affect:
- how you account for VAT
- how much you must pay
- how much you can reclaim
Find information about VAT for builders and VAT for charities.
International trade
Goods exported outside the UK 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.
From 15 July 2020 to 31 March 2021, certain supplies of catering and hot takeaway food that would normally be taxable at the standard rate of VAT, will be liable to the reduced rate of 5%.
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:
Sport, leisure, culture and antiques
Sport
| Goods or services | VAT rate | More information |
|---|---|---|
| Physical education and sports activities | Exempt | VAT Notice 701/45 |
Leisure
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
To qualify for the reduced rate, you must be over 60 or in receipt of any of the benefits listed in VAT Notice 708/6.
Alternatively, you may be eligible to get the reduced rate on the products if the total cost of them (not including VAT) is not over 60% of the installation of the products (not including VAT).
If your products cost more than 60% of the installation, you’ll only be entitled to the reduced rate on the installation.
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)
| Installed goods | VAT rate | More information |
|---|---|---|
| Closed solid fuel fire cassettes | 5% | VAT Notice 708/6 |
| Electric dual immersion water heaters with factory-insulated hot water tanks | 5% | VAT Notice 708/6 |
| Electric storage heaters | 5% | VAT Notice 708/6 |
| Gas-fired boilers | 5% | VAT Notice 708/6 |
| Gas room heaters with thermostatic controls | 5% | VAT Notice 708/6 |
| Oil-fired boilers | 5% | VAT Notice 708/6 |
| Radiators | 5% | VAT Notice 708/6 |
| The installation, repair and maintenance of a boiler, radiators, pipework and controls forming a central heating system (including micro combined heat and power systems) | 5% | VAT Notice 708/6 |
| The installation, repair and maintenance of renewable source heating systems. This means space or water heating systems which use energy from: renewable sources, including solar, wind and hydroelectric power; or near renewable sources, including ground and air heat | 5% | VAT Notice 708/6 |
| Connection or reconnection to the mains gas supply | 5% | VAT Notice 708/6 |
Building and construction, land and property
Building and construction
| Goods or services | VAT rate | More information |
|---|---|---|
| Substantial reconstructions to protected buildings that are buildings used as a dwelling, for a relevant residential purpose or for a relevant charitable purpose | 0% | VAT Notice 708 |
| The installation of a bathroom or lavatory, constructing ramps and widening doorways or passageways for disabled people in their own home | 0% | Building services for disabled people |
| Construction and first freehold or long leasehold sale of a new building for a relevant charitable purpose | 0% | VAT Notice 708 |
| Construction and first freehold or long leasehold sale of a new building for relevant residential purposes | 0% | VAT Notice 708 |
| Construction and first freehold or long leasehold sale of new domestic buildings | 0% | VAT Notice 708 |
| Converting existing premises by increasing the number of dwellings within the building | 5% | VAT Notice 708 |
| Renovating a dwelling that has been empty for at least 2 years | 5% | VAT Notice 708 |
| First freehold or long leasehold sale of a commercial building converted into a dwelling or dwellings | 0% | VAT Notice 708 |
| First freehold or long leasehold sale of buildings converted for relevant residential purposes | 0% | VAT Notice 708 |
| First freehold or long leasehold sale of buildings converted for relevant charitable purposes | 0% | VAT Notice 708 |
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 |
|---|---|---|
| Freight transport to or from a place outside the UK | 0% | Domestic freight transport is standard-rated, unless it is the domestic leg of freight transport between the UK and another country (0%). — VAT Notice 744B |
| Freight containers — sale, lease or hire to a place outside the UK and the EU | 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
Clothing and footwear
Protective and safety equipment
Financial services and investments, insurance
Financial services and investments
| Goods or services | VAT rate | More information |
|---|---|---|
| Financial services including the issue, transfer or receipt of, or dealing with money, securities for money or orders for the payment of money | Exempt | VAT Notice 701/49 |
| The granting of credit such as loans | Exempt | VAT Notice 701/49 |
| The management of credit by the person who has granted it | Exempt | VAT Notice 701/49 |
| The provision of the facility of instalment credit finance for example hire-purchase | Exempt | VAT Notice 701/49 |
| The provision of qualifying financial intermediary services | Exempt | VAT Notice 701/49 |
| The issue, transfer or dealing with a security, including shares and bonds | Exempt | VAT Notice 701/49 |
| The operation of a current, deposit or savings account | Exempt | VAT Notice 701/49 |
| The management of a qualifying special investment fund | Exempt | VAT Notice 701/49 |
| Financial service supplied as a separate element but with other goods or services | Exempt | VAT Notice 701/49 |
| Financial service supplied as part of a single supply with other goods or services | Exempt if financial service is the principal element of the supply | VAT Notice 701/49 |
| Gold investment coins | Exempt | VAT Notice 701/21 |
Insurance
| Goods or services | VAT rate | More information |
|---|---|---|
| Friendly society subscriptions for the provision of insurance | Exempt | VAT Notice 701/36 |
| Insurance and reinsurance transactions | Exempt | VAT Notice 701/36 |
| Insurance brokers and agents acting in an intermediary capacity | 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 |
