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Rate
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Name (Tax Code)
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Type
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Description
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Exempt
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Sales & Purchases
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“Domestic Exempt” – (Sales & Purchases) of (goods & services) from UK to UK – exempt from UK VAT but reported on your UK VAT return.
Some domestic supplies of goods and services are specifically exempt from VAT. These items are still reported on your UK VAT return. It should be noted that a business which performs sales that are exempt from VAT, may be subject to restrictions on the recovery of VAT incurred on purchases.
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Exempt acquisition
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Purchases
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“Exempt acquisition” – (Purchases) of (goods) from EU to Northern Ireland
This tax code is no longer applicable to UK customers other than those importing goods into Northern Ireland. Instead, UK VAT-registered customers will need to report goods purchased from EU VAT-registered businesses in the same way as they report goods purchased from non-EU countries on their UK VAT return.
If you are a UK VAT-registered customer importing goods into Northern Ireland and you purchase goods for your business from a VAT-registered business in an EU country and the goods are shipped to Northern Ireland from that EU country, you may be required to self-account for UK VAT on the sale in your UK VAT return (see other “acquisition” tax codes), although for this tax code, there will be no VAT to self-assess as the transaction is not reportable for VAT purposes and therefore will not appear on your UK VAT return.
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---
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Exempt non-PIVA import
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Purchases
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“Exempt non-PIVA import” – (Purchases) of (goods) from non-UK to UK
If you are the customer and import goods into the UK from outside the UK, VAT is normally due at the same rate as on a supply of those goods in the UK, in this case, the exempt rate of 0%.
This rate applies to VAT-exempt import transactions only (i.e., those that would have been exempt if purchased in the UK). For import transactions that are exempt from VAT, PIVA is not relevant / does not apply.
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Outside the scope - not
reportable
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Sales & Purchases
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“Outside the scope – not reportable” – (Sales & Purchases) of (goods & services) outside the scope of VAT and not reportable on your UK VAT return (e.g., donations, tips, grants, etc.)
Some transactions are outside of the scope of VAT, should not have VAT applied and are not reportable on your UK VAT return.
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Outside the scope -reportable
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Sales
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“Outside the scope – reportable” – (Sales) of (goods & services) outside the scope of VAT but reportable on your UK VAT return.
Some transactions are outside of the scope of VAT and should not have VAT applied but are still
reported in your VAT return. For example, HMRC guidance explains that supplies which are outside the scope of UK VAT as described in Place of supply of services (VAT Notice 741A) should be reported in box 6 of the UK VAT return
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-
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UK domestic reverse
charge no VAT
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Sales
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“UK domestic reverse charge no VAT” – (Sales) of (goods & services) from UK to UK
The Domestic Reverse Charge (“DRC”) only applies to the sale and purchase of specific goods and services and in some instances only for supplies over a certain value. It is the responsibility of the customer, rather than the supplier, to self-account for UK VAT on supplies of the specified goods or services.
Examples of goods that the DRC applies to are:
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Mobile phones
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Computer chips
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Wholesale gas
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Wholesale electricity
Examples of services that the DRC applies to are:
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Emission allowances
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Wholesale telecommunications
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Renewable energy certificates
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Construction Industry Scheme services with effect from 1 March 2021
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-
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Acquisition
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Purchases
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“0.0% Acquisition” – (Purchases) of (goods) from EU to Northern Ireland
This tax code is no longer applicable to UK customers other than those importing goods into Northern Ireland. Instead, UK VAT-registered customers will need to report goods purchased from EU VAT-registered businesses in the same way as they report goods purchased from non-EU countries on their UK VAT return.
If you are a UK VAT-registered customer importing goods into Northern Ireland and you purchase goods for your business from a VAT-registered business in an EU country and the goods are shipped to Northern Ireland from that EU country, you may be required to self-account for UK VAT on the sale in your UK VAT return (see other acquisition” tax codes), although for this tax code there will be no VAT to self-assess as the zero rate of 0% applies.
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-
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Non-PIVA import
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Purchases
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“0.0% Non-PIVA Import” – (Purchases) of (goods) from non-UK to UK
If you are the customer and import goods into the UK from outside the UK, VAT is normally due at the same rate as on a supply of those goods in the UK (see other “import” tax codes), in this case the zero rate of 0% is applied.
When an import transaction has a zero rate of VAT, even if registered for PIVA, PIVA does not apply as there is no impact to VAT cash flow. This code should be used, where the goods would ordinarily be subject to the zero rate if purchased in the UK.
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-
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Zero rate
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Sales & Purchases
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“0.0% Zero rate” – (Sales & Purchases) of (goods & services) from non-UK to UK
Some supplies of goods and services within the UK are charged at the zero rate of VAT of 0%. These items are recorded on your VAT return.
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0.0%
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Zero-rated dispatch
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Sales
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“0.0% - Zero-rated dispatch” – (Sales) of (goods) from Northern Ireland to EU
If you are a UK supplier, dispatches are goods that you supply and ship from Northern Ireland to a destination within an EU country.
You can zero-rate dispatch transactions where the relevant criteria are met as per UK VAT regulations.
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0.0%
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Zero-rated export
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Sales
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“0.0% - Zero-related export” – (Sales) of (goods) from UK to non-UK
Exports are goods that you supply and ship to a customer in a location as follows:
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From Great Britain (England, Scotland and Wales) to any destination outside the UK
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From Northern Ireland to a destination outside the UK and EU
You can zero-rate Export transactions where the relevant criteria are met as per UK VAT regulations.
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5.0%
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Acquisition
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Purchases
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“5.0% - Acquisition” – (Purchases) of (goods) from EU to Northern Ireland
This tax code is no longer applicable to UK customers other than those importing goods into Northern Ireland. Instead, UK VAT-registered customers will need to report goods purchased from EU VAT registered businesses in the same way as they report goods purchased from non-EU countries on the VAT return.
If you are a UK VAT-registered customer importing goods into Northern Ireland and you purchase goods for your business from a VAT-registered business in an EU country and the goods are shipped to Northern Ireland from that EU country, you may be required to self-account for UK VAT on your UK VAT return, at the rate applicable to the goods per the UK VAT regulations, which in this case is the reduced rate of 5%.
The selection of this ‘self-assessed’ VAT rate means the self-accounted VAT will be recovered as input tax on the same VAT return. Your eligibility to recover this VAT will be subject to the input tax recovery rules per UK VAT regulations and you may need to make a manual adjustment to your UK VAT return where you do not meet the conditions for full VAT recovery.
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5.0%
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Non-PIVA import
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Purchases
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“5.0% - Non-PIVA import” – (Purchases) of (goods) from non-UK to UK
If you are the customer and import goods into the UK from outside of the UK, VAT is normally due at the same rate as on a supply of those goods in the UK. VAT is normally recoverable based on the import VAT certificate (C79) issued to your business by HM Revenue & Customs. Import VAT certificates can now be downloaded from your Government Gateway account and should be retrieved on a regular basis.
If you are not using PIVA, you will pay import VAT at the time the goods are cleared into the UK along with the customs declaration on which your EORI number is referenced.
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5.0%
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PIVA import
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Purchases
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“5.0% - PIVA import” – (Purchases) of (goods) from non-UK to UK
If your business is registered for VAT in the UK and has a UK EORI number, you have the option to account for import VAT on your UK VAT Return using the Postponed Import VAT Accounting (“PIVA”) scheme in relation to goods you import into:
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Great Britain (England, Scotland and Wales) from anywhere outside the UK
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Northern Ireland from outside the UK and EU
The selection of this ‘self-assessed’ VAT rate means the self-accounted VAT will be recovered as input tax on the same VAT return. Your eligibility to recover this VAT will be subject to the input tax recovery rules again per UK VAT regulations and you may need to make a manual adjustment to your VAT return where you do not meet the conditions for full VAT recovery.
VAT is normally declared based on the PIVA statement issued to your business by HM Revenue &
Customs. PIVA statements can be downloaded from your Government Gateway account, and should be retrieved on a regular basis. Please note, you can only access a PIVA statement for 6 months from the date it’s published.
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5.0%
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Reduced rate
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Sales & Purchases
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"5.0% - Reduced rate" - (Sales & Purchases) of (goods & services) from UK to UK
Some supplies of goods and services within the UK are charged at the reduced rate of VAT of 5%. These items are reported on your VAT return.
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12.5%
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Reduced rate
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Sales & Purchases
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"12.5% - Reduced rate" - (Sales & Purchases) of (goods & services) from UK to UK
Some supplies of goods and services within the UK are charged at the reduced rate of VAT of 12.5%. These items are reported on your VAT return.
This temporary reduced rate, which applied to tourism and hospitality supplies ended on 31 March 2022.
It only applies to relevant supplies that were made between 1 October 2021 and 31 March 2022.
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20.0%
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Acquisition
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Purchases
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“20.0% Acquisition” – (Purchases) of (goods) from EU to Northern Ireland
This tax code is no longer applicable to UK customers other than those importing goods into Northern Ireland. Instead, UK VAT-registered customers will need to report goods purchased from EU VAT registered businesses in the same way as they report goods purchased from non-EU countries on the VAT return.
If you are a UK VAT-registered customer importing goods into Northern Ireland and you purchase goods from a VAT-registered business in an EU country and the goods are shipped to Northern Ireland from that EU country, you may be required to self-account for VAT on your UK VAT return, at the rate applicable to the goods as per the UK VAT regulations, which in this case is the standard rate of 20%.
The selection of this ‘self-assessed’ VAT rate means the self-accounted VAT will be recovered as input tax on the same VAT return. Your eligibility to recover this VAT will be subject to the input tax recovery rules again per UK VAT regulations and you may need to make a manual adjustment to your VAT return where you do not meet the conditions for full VAT recovery.
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20.0%
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Non-PIVA import
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Purchases
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“20.0% - Non-PIVA import” – (Purchases) of (goods) from non-UK to UK
If you are the customer and import goods into the UK from outside of the UK, VAT is normally due at the same rate as on a supply of those goods in the UK. VAT is normally recoverable based on the import VAT certificate (C79) issued to your business by HM Revenue & Customs. Import VAT certificates can now be downloaded from your Government Gateway account and should be retrieved on a regular basis.
If you are not using PIVA, you will pay import VAT at the time the goods are cleared into the UK along with the customs declaration on which your EORI number is referenced.
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20.0%
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PIVA import
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Purchases
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“20.0% - PIVA import” – (Purchases) of (goods) from non-UK to UK
If you are the customer and you import goods into the UK from outside the UK, VAT is normally due at the same rate as on a supply of those goods in the UK, in this case the standard rate of 20%.
If your business is registered for VAT in the UK and has a UK EORI number, you have the option to account for any import VAT on your UK VAT Return using the Postponed Import VAT Accounting (“PIVA”) scheme in relation to goods you import into:
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Great Britain (England, Scotland and Wales) from anywhere outside the UK
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Northern Ireland from outside the UK and EU
The selection of this ‘self-assessed’ VAT rate means the self-accounted VAT will be recovered as input tax on the same VAT return. Your eligibility to recover this VAT will be subject to the input tax recovery rules again per UK VAT regulations and you may need to make a manual adjustment to your VAT return where you do not meet the conditions for full VAT recovery.
VAT is normally declared based on the PIVA statement issued to your business by HM Revenue &
Customs. PIVA statements can be downloaded from your Government Gateway account, and should be retrieved on a regular basis. Please note, you can only access a PIVA statement for 6 months from the
date it’s published.
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20.0%
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Reverse charge
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Purchases
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“20% - Reverse charge” – (Purchases) of (services) from non-UK to UK
If you are the customer and you purchase certain services from a supplier who belongs outside of the UK, those services must be treated under the reverse charge mechanism i.e., reported as both a sale and a purchase on your VAT return. You must account for any output tax due on the services at the applicable rate as if those services were supplied within the UK. You can also recover the VAT on these services as input tax, subject to the normal recovery rules as per the UK VAT regulations.
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20.0%
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PIVA import
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Purchases
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“20.0% - PIVA import” – (Purchases) of (goods) from non-UK to UK
If you are the customer and you import goods into the UK from outside the UK, VAT is normally due at the same rate as on a supply of those goods in the UK, in this case the standard rate of 20%.
If your business is registered for VAT in the UK and has a UK EORI number, you have the option to account for any import VAT on your UK VAT Return using the Postponed Import VAT Accounting (“PIVA”) scheme in relation to goods you import into:
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Great Britain (England, Scotland and Wales) from anywhere outside the UK
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Northern Ireland from outside the UK and EU
The selection of this ‘self-assessed’ VAT rate means the self-accounted VAT will be recovered as input tax on the same VAT return. Your eligibility to recover this VAT will be subject to the input tax recovery rules again per UK VAT regulations and you may need to make a manual adjustment to your VAT return where you do not meet the conditions for full VAT recovery.
VAT is normally declared based on the PIVA statement issued to your business by HM Revenue &
Customs. PIVA statements can be downloaded from your Government Gateway account, and should be retrieved on a regular basis. Please note, you can only access a PIVA statement for 6 months from the date it’s published.
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20.0%
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Standard rate
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Sales & Purchases
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“20% - standard rate” – (Sales & Purchases) of (goods & services) from UK to UK
Most supplies of goods and services within the UK are charged at the standard rate of VAT of 20%.
These items are reported on your VAT return.
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20.0%
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UK domestic reverse
charge
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Purchases
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“20% - UK domestic reverse charge” – (Purchases) of (goods & services) from UK to UK
The Domestic Reverse Charge (“DRC”) only applies to the sale and purchase of specific goods and services and in some instances only for supplies over a certain value. It is the responsibility of the customer, rather than the supplier, to self-account for VAT on supplies of the specified goods or services.
Examples of goods that the DRC applies to are:
-
Mobile phones
-
Computer chips
-
Wholesale gas
-
Wholesale electricity
Examples of services that the DRC applies to are:
-
Emission allowances
-
Wholesale telecommunications
-
Renewable energy certificates
-
Construction Industry Scheme services with effect from 1 March 2021
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