HMRC guidance on VAT rates on goods and services

HMRC has published detailed guidance on rates of VAT on different goods and services.

The guide explains the different VAT rates and provides links to guidance on the special VAT rules for certain trade sectors such as retail and wholesale, manufacturing, farming and transport.

It also specifically lists certain goods and services in the following categories that are reduced-rated (at 5%), zero-rated, exempt, or outside the scope of VAT:

Sport, leisure, culture and antiques

Health, education, welfare and charities

Power, utilities, energy and energy saving, heating

Building and construction, land and property

Transport, freight, travel and vehicles

Printing, postage, publications - books, magazines and newspapers

Clothing and footwear, protective and safety equipment

Financial services and investments, insurance

The list is not exhaustive and there may be conditions that must be met before a reduced rate can apply or before it can be accepted as exempt or outside the scope of VAT.

The HMRC guidance is available HERE

Diane Tan | Content manager - current awareness, CCH

Diane Tan is content manager, current awareness at CCH, Wolters Kluwer UK www.cch.co.uk...

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