top of page

VAT Rates For Goods & Services

Food and Drink
 

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.

Animals and animal food

​

Supplies of live animals that are zero-rated

​

You can zero rate the sale, hire or loan or supply of a part interest (a share) of a live animal provided it’s of a kind generally used in the UK, or yielding or producing food for human consumption.

Animal includes bird, fish, crustacean and mollusc.

​

Examples of Zero Rated Animals are:

  • meat animals

  • dairy animals

  • poultry (except ornamental breeds), including those for egg production, 

  • honey bees

  • fish (except ornamental breeds and coarse fish), including those for production of edible roes

​

Animals that are standard-rated

Examples of standard-rated animals are:

  • bumble bees

  • ornamental birds and fish

  • racing pigeons

  • horses

  • Live kangaroos

​

Pets

Animals that will be kept as pets can be zero-rated only if they are of a kind that is normally used for human food production. For example, rabbits, other than ornamental breeds, are always zero-rated.

 

Animals kept for non-food purposes

Animals kept for non-food purposes can be zero-rated if they are of a kind normally producing food for human consumption. Sheep kept mainly for their wool, or bulls used for breeding are zero-rated.

​

Birds

​

Most breeds of chicken are zero-rated, as are game birds and ostriches.

Ornamental breeds of birds are standard-rated.

​

The following breeds of ducks, geese and turkeys are zero-rated:

​

Type of fowl Breed

​

Ducks - Aylesbury, Campbell (Khaki Campbell), Indian Runner, Muscovy, Pekin and derivatives and crossbreeds of these

Geese - Brecon Buff, Chinese Commercial, Embdem, Roman, Toulouse and derivatives and crossbreeds of these

Turkeys - Beltsville White, British White, Broadbreasted White, Bronze (Broadbreasted Bronze), Norfolk Black and derivatives and crossbreeds of these

​

Fish

​

Freshwater fish - Eels, salmon and trout and others recognised as food for human consumption are zero rated. Bream, perch, pike, carp and tench are standard rated.

​

Shellfish - Oysters, mussels, whelks are zero rated while non food species are standard rated

​

Fish for aquaria -All supplies are standard rated

​

Fish used as bait - Fish of a kind, and fit for, human consumption are zero rated and all other supplies are standard rated.

​

Ornamental fish - for example koi carp

Agricultural and horticultural crops

​

Crops covered by the relief

All crops that are specifically grown to produce food of a kind for human consumption or animal feeding stuffs are zero-rated.

The zero rate also applies to seeds, seedlings, crowns, spores, tubers and bulbs of edible vegetables and fruit.

​

What’s not covered by the relief

Any crop that generally produces items that are not fed to humans or animals is always standard-rated.

Plants that are primarily grown for their ornamental effect (such as ornamental nursery stock including trees, shrubs, herbaceous plants, alpines and pot plants) are standard-rated.

​​

Plants, seeds and fruit of a kind used for the production of perfumes, pharmaceutical products, insecticides, fungicides and other non-food uses are standard-rated.

​​

Some examples of plants that are standard-rated are:

  • Evening primrose, because this is grown for the extraction of its oil

  • Tulips and Hyacinths, because these are grown and sold for ornamental purposes

  • Norfolk reed, because this is grown for thatching material

Sport, leisure, culture and antiques

​

  • Betting and gaming — including pool betting and games of chance is Exempt from VAT

  • Bingo — including remote games played on the internet, telephone, television or radio is Exempt from VAT

  • Bingo — including remote games played on the internet, telephone, television or radio is Exempt from VAT

  • Lottery ticket sales is Exempt from VAT

  • Online lottery games is exempt from VAT

  • Retailer commission on lottery ticket sales is Exempt from VAT

​

Culture

​

  • Admission charges by public authorities or eligible cultural bodies to certain cultural events such as visits to museums, art exhibitions, zoos and performances is Exempt from VAT

​

Antiques

​

  • ​Antiques, works of art or similar (as assets of historic houses) sold by private treaty to public collections are exempt from VAT

  • Antiques, works of art or similar (as assets of historic houses) used to settle a tax or estate duty debt with HMRC  again are exempt from VAT

Health, education, welfare and charities

​

Charities

​

  • Admission charges by charities are Exempt from VAT

  • Advertising services for charities VAT are zero rated

  • Certain goods sold at charitable fundraising events are zero rated

  • Charitable fundraising events are Exempt from VAT

  • Charity shops — selling donated goods is zero rated for VAT

  • Construction and sale of new buildings for a relevant charitable purpose are zero rated for VAT

  • Energy-saving materials permanently installed in dwellings and buildings used for a relevant residential purpose providing the total cost of them (not including VAT) is not over 60% of the cost of the installation of the products (not including VAT) 5% reduced rate VAT applies.

  • Energy-saving materials — supply only — are Standard-Rated (20%) 

  • Sponsored charitable events are Exempt from VAT. 

  • Voluntary donations to charities are outside the scope of VAT

​

Welfare

​

  • Building services for disabled people are zero rated for VAT

  • Burial or cremation of dead people, or burial at sea is Exempt from VAT

  • Mobility aids for the elderly, 5% reduced rate VAT applies

  • Equipment for blind or partially sighted people is zero rated

  • Equipment for disabled people is zero rated for VAT

  • Funeral plans written under contracts of insurance are Exempt from VAT

  • Smoking cessation products — nicotine patches and gum, 5% reduced rate VAT applies

  • Welfare services provided by charities at significantly below cost are Outside the scope of VAT

  • Magnetic tape adapted for recording speech for blind people together with apparatus for making and playing the adapted tape and certain low vision aids are zero rated.

​​

Health

​

  • Care or medical treatment provided by a qualifying institution like a hospital, hospice or nursing home are Exempt

  • Dispensing of prescriptions by a registered pharmacist is zero rated for VAT

  • Health services provided by registered doctors, dentists, opticians, pharmacists and other health professionals is Exempt from VAT

  • Incontinence products are zero rated.

  • Maternity pads are zero rated

  • Sanitary protection products are zero rated

  • Low vision aids are zero rated

​

Education

​

  • Education and vocational training provided by an eligible body other than a ‘private school’. Goods or services closely connected to the education provided by an eligible body like a school, college or university is Exempt from VAT.  VAT Notice 701/30

​Building and construction
​

  • Substantial reconstructions to protected buildings that are buildings used as a dwelling, for a relevant residential purpose or for a relevant charitable purpose is zero rated VAT Notice 708

  • The installation of a bathroom or lavatory, constructing ramps and widening doorways or passageways for disabled people in their own home is zero rated Building services for disabled people

  • Construction and first freehold or long leasehold sale of a new building for a relevant charitable purpose is zero rated. VAT Notice 708

  • Construction and first freehold or long leasehold sale of a new building for relevant residential purposes is zero rated. VAT Notice 708

  • Construction and first freehold or long leasehold sale of new domestic buildings is zero rated. VAT Notice 708

  • Converting existing premises by increasing the number of dwellings within the building, 5% VAT applies. VAT Notice 708

  • Renovating a dwelling that has been empty for at least 2 years 5% VAT applies. VAT Notice 708

  • First freehold or long leasehold sale of a commercial building converted into a dwelling or dwellings is zero rated. VAT Notice 708

  • First freehold or long leasehold sale of buildings converted for relevant residential purposes is zero rated. VAT Notice 708

  • First freehold or long leasehold sale of buildings converted for relevant charitable purposes is zero rated. VAT Notice 708

​

Land and property

​

  • Garages or parking spaces let together with dwellings (under short hold tenancy agreements) for permanent residential use are Exempt from VAT. — VAT Notice 742

  • Parking — grant, or licence, to occupy land on which incidental parking takes place is Exempt from VAT.  VAT Notice 742

  • Property, land and buildings — grant, or licence, to occupy land or buildings is Exempt from VAT. VAT Notice 742

  • Sale or long lease of a new dwelling with garage or parking space is zero rated for VAT. VAT Notice 708

​

​

Transport, freight, travel and vehicles

Transport

  • Aircraft repair and maintenance is zero rated for VAT. VAT Notice 744C
     

Travel​
 

  • Houseboat moorings are Exempt from VAT. VAT Notice 742

  • Parking spaces or garages supplied with houseboat moorings are Exempt from VAT. VAT Notice 742

  • Passenger transport in a vehicle, boat or aircraft that carries not less than 10 passengers is zero rated for VAT. VAT Notice 744A

  • Tolls for bridges, tunnels and roads operated by public authorities is Outside the scope of VAT. Privately-operated tolls for bridges, tunnels and roads are standard-rated — VAT Notice 700
     

Freight

​

  • Freight transport to or from a place outside the UK is zero rated for VAT. Domestic freight transport is standard-rated, unless it is the domestic leg of freight transport between the UK and another country in which it is zero rated. — VAT Notice 744B

  • Freight containers — sale, lease or hire to a place outside the UK and the EU is zero rated. VAT Notice 703/1

  • International freight transport that takes place in the UK and its territorial waters is zero rated. VAT Notice 744B


Vehicles

 

  • Aircraft repair and maintenance is zero rated. VAT Notice 744C

  • Airships — sale or charter is zero rated. VAT Notice 744C

  • Caravans (more than 7 metres long or more than 2.55 metres wide) is zero rated or 5%.  Taxing holiday caravans

  • Civil aeroplanes — sale or charter is zero rated for VAT. Gliders — sale or charter — are standard-rated as are hot air balloons — VAT Notice 744C
     

  • Helicopters — sale or charter is zero rated for VAT. VAT Notice 744C

  • Houseboats — sale or let out on hire is zero rated for VAT, But holiday accommodation let in a moored houseboat is standard-rated — VAT Notice 701/20
     

  • Military aeroplanes — sale or charter is zero rated for VAT. VAT Notice 744C

  • Ship repairs and maintenance is zero rated for VAT. VAT Notice 744C

  • Shipbuilding — 15 tons or over gross tonnage is zero rated for VAT.
    VAT Notice 744C


 

Printing, postage, publications — books, magazines and newspapers
​

Printing

​

​

Postage

​

  • Direct-mail postal services meeting all the conditions of VAT Notice 700/24 3.2 and 3.3 are 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 are Exempt from VAT. Standard Royal Mail first and second class services for example

  • Other postal services that are not subject to a universal service obligation are Standard-Rated (20%) Supplies that are not subject to regulation

 

Publications

​

​

Clothing and footwear, protective and safety equipment
 

Clothing and footwear
 

​

Protective and safety equipment

  • Carrycots with restraint straps, 5% VAT applies.  VAT Notice 701/23

  • Children’s car seats, booster seats and booster cushions , 5% VAT applies. VAT Notice 701/23

  • Children’s safety seats with bare wheeled framework, 5% VAT applies. Prams and pushchairs are standard-rated (20%) — VAT Notice 701/23
     

  • Cycle helmets — CE marked are zero rated for VAT.  VAT Notice 701/23

  • Motorcycle helmets that meet safety standards are zero rated for VAT. VAT Notice 701/23

  • Protective boots and helmets for industrial use are zero rated for VAT. VAT Notice 701/23

Open Government Licence v3.0

Demystifying VAT

VATDIGITAL.COM

Making VAT Simple

VAT & Tax News , Compliance Guides, Information, Technology, AI Advisor - Online 24/7

London  

Creative Base Wimbledon

Contact: enquiries@vatdigital.com

vatdigital.com is owned and operated by Skyline Accountancy Ltd

  • Instagram
  • Facebook
  • Youtube
  • Linkedin

vatdigital.com / vatdigitalmedia.com / Vatdigital.ai © Copyright 2025 All Rights Reserved  

All information and data contained on this website is to provide a general understanding of VAT and highlight current issues relating to VAT.  Under no circumstances does the information and data contained constitute professional advice and as such any reliance placed on this information or data is strictly at your own risk.  Professional advice should be independently sought and no representation or any warranty either expressed or implied is given to the accuracy or completeness of the information or data contained on this website.

bottom of page