VAT rates applicable to goods and services ― overview

Produced by Tolley
VAT rates applicable to goods and services ― overview

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • VAT rates applicable to goods and services ― overview

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

The default rate of VAT for supplies of goods and services in the UK is the standard rate (which is currently 20%).

However, certain goods and services are not subject to this default rate of VAT and instead the supply may be exempt, zero-rated (0%), reduced-rated (5%) or outside the scope of VAT.

The table below summarises the VAT treatment of a number of key types of supply which are not subject to the default standard-rating:

Type of supplyVAT rateRelevant guidance noteRelevant HMRC guidance
Admission charges by charitiesExemptCharities ― fundraising eventsHow VAT affects charities (VAT Notice 701/1) and Charity fundraising events: exemptions
Admission charges by public authorities or eligible cultural bodies to certain cultural events such as visits to museums, art exhibitions, zoos and performancesExemptCultural exemptionAdmission charges to cultural events (VAT Notice 701/47)
Admission charges for supplies not covered by the cultural exemption (excluding sporting events)Temporary reduced rate:
5% (15 July 2020 ― 30 September 2021)
12.5% (1 October 2021 ― 31 March 2022)
Standard rate from 1 April 2021
Hospitality industry ― temporary reduced rate from 15 July 2020 to 31 March 2022VAT: reduced rate for hospitality, holiday accommodation and attractions
Advertising services for charities0%Charities ― advertisingGoods or services supplied to charities (VAT Notice 701/58)
Aircraft repair and maintenance0%Aircraft and ships ― modification, repair and conversionShips, aircraft and associated services (VAT Notice 744C)
Aircraft ― sale or charter0%Aircraft and ships ― supplies of aircraft and shipsShips, aircraft and associated services (VAT Notice 744C)
Altering

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