Standard rate

Supplies which are not:

exempt,

zero-rated, or

chargeable at the reduced rate (5%),

are by default chargeable at the standard rate of 20% (VATA 1994 s 2)

Zero rate

Supplies chargeable to VAT at the zero rate (VATA 1994 s 30 and Sch 8) are:

books,

brochures,

leaflets,

pamphlets,

children’s painting and picture books,

maps and charts,

magazines,

newspapers,

printed or copied music,

publications (Some publication items are standard-rated e.g. exercise books, letterheads, posters),

baby wear,

children’s clothes and footwear,

cycle helmets and motorcycle helmets that meet safety standards,

protective boots and helmets for industrial use,

advertising services for charities,

certain goods sold at charitable fundraising events,

charity shops that sell donated goods,

the construction and sale of new buildings for a relevant charitable purpose,

building services for disabled people,

equipment for blind or partially sighted people,

equipment for disabled people,

magnetic tape adapted to record speech for blind people and the apparatus to make or play such tape,

dispensing of prescriptions by a registered pharmacist,

incontinence products,

low vision aids,

emptying of cesspools, septic tanks or similar facilities,

sewerage services supplied to domestic or industrial customers,

water supplied to households (water supplied to industrial customers is standard-rated),

ship repairs and maintenance,

shipbuilding where gross tonnage is 15 tons or more,

substantial reconstructions to protected buildings that are buildings used as a dwelling:

for a relevant residential purpose, or

for a relevant charitable purpose,

installation of bathrooms, lavatories, constructing ramps in the homes of people with a disability,

widening doorways or passageways in the homes of people with a disability,

construction and first freehold or long leasehold sale of a new building for a relevant charitable purpose,

construction and first freehold or long leasehold sale of a new building for relevant residential purposes,

construction and first freehold or long leasehold sale of new domestic buildings,

first freehold or long leasehold sale of a commercial building converted into a dwelling(s),

first freehold or long leasehold sale of buildings converted for relevant residential purposes,

first freehold or long leasehold sale of buildings converted for relevant charitable purposes,

sale or long lease of a new dwelling with a garage or parking space,

aircraft repair and maintenance,

domestic leg of freight transport to or from a place outside the EU (Standard-rated freight transport includes domestic freight transport and freight transport between the UK and another EU member State),

the sale, lease or hire of freight containers to a place outside the EC

the sale, lease or hire of freight containers to an EC member State,

international freight transport that takes place in the UK and its territorial waters,

passenger transport in a vehicle, boat or aircraft that carries not less than ten passengers,

aircraft repair and maintenance,

the sale or charter of airships,

the sale or charter of civil aeroplanes (Gliders and hot air balloons are standard-rated),

the sale or charter of helicopters,

the sale, letting-out or hire of houseboats (Holiday accommodation let in a moored houseboat is standard-rated), and

the sale or charter of military aeroplanes.

Reduced rate

The goods and services chargeable to VAT at the reduced rate of 5% are (VATA 1994 s 29A and Sch 7A):

mobility aids for the elderly,

smoking cessation products (e.g. nicotine patches and gum),

maternity pads,

sanitary protection products,

renovating a dwelling that has been empty for at least two years,

converting existing premises by increasing the number of dwellings within the building,

carrycots with restraint straps,

children’s car seats, booster seats and booster cushions (prams and pushchairs are standard-rated),

children’s safety seats with bare wheeled framework,

solid fuel for domestic and residential use or for non-business use by a charity,

heating oil for domestic and residential use or for non-business use by a charity,

gas for domestic and residential use or for non-business use by a charity,

electricity for domestic and residential use or for non-business use by a charity,

the installation of energy saving materials permanently installed in dwellings and buildings used for residential purposes (the supply of energy saving materials is standard rated), such as:

central heating and hot water controls,

micro combined heat and power units,

ground source heat pumps,

water and wind turbines,

boilers (wood fuelled),

air source heat pumps,

draught stripping,

solar panels, and

insulation,

heating appliances, such as:

electric dual immersion water heaters with factory-insulated hot water tanks,

gas room heaters with thermostatic controls,

electric storage heaters and gas-fired boilers,

closed solid fuel fire cassettes, and

oil-fired boilers radiators,

the installation, repair and maintenance of renewable source heating systems which use:

solar energy,

wind energy,

hydroelectric energy, or

near renewable sources including ground and air heat,

connection or reconnection to the mains gas supply,

the installation, repair and maintenance of:

boilers,

radiators,

pipework, and

controls forming a central heating system (including micro combined heat and power systems).

caravans (more than 7m long or more than 2.55m wide) which are neither designed nor manufactured for continuous year round occupation.