If you’re in the UK and the place of supply of your service is in the UK, you charge and account for VAT according to UK VAT rules. If you’re in the UK and the place of supply of your service is in an EU country, you do not pay UK VAT.

What goods and services have VAT?

VAT rates on different goods and services

  • Introduction.
  • VAT rate conditions.
  • Food and drink, animals, animal feed, plants and seeds.
  • Sport, leisure, culture and antiques.
  • Health, education, welfare and charities.
  • Power, utilities, energy and energy saving, heating.
  • Power.
  • Building and construction, land and property.

Do companies pay VAT on services?

In the UK VAT, or Value Added Tax, is a business tax levied by the government on sales of goods and services. While VAT registered businesses charge their customers VAT on the products and services they sell, they also pay VAT on the products and services they buy, such as raw materials, professional services or stock.

What goods and services are exempt from VAT?

There are some goods and services on which VAT is not charged, including:

  • insurance, finance and credit.
  • education and training.
  • fundraising events by charities.
  • subscriptions to membership organisations.
  • selling, leasing and letting of commercial land and buildings – this exemption can be waived.

What items are zero-rated for VAT?

Zero-rated items are goods on which the Government charge VAT but the rate is currently set to zero. The goods covered by this classification are items such as children’s clothes and footwear, water, basic foods, books and newspapers.

What items are VAT exempt in UK?

Items that are VAT exempt in the UK

  • Some food and drink. Most food and drink for human consumption is VAT exempt, but there are some important exceptions.
  • Children’s clothes.
  • Publications.
  • Some medical supplies and equipment.
  • Charity shop goods.
  • Antiques.
  • Some admission charges.
  • Gambling.

What are the zero rated goods and services?

Often, goods and services that are zero-rated are those that are considered necessary, such as food items, sanitary products, and animal feeds. Examples of zero-rated goods include certain foods and beverages, exported goods, equipment for the disabled, prescription medications, water, and sewage services.