VAT rates for goods and services
| % of VAT | What the rate applies to | |
|---|---|---|
| Standard rate | 20% | Most goods and services |
| Reduced rate | 5% | Some goods and services, eg children’s car seats and home energy |
| Zero rate | 0% | Zero-rated goods and services, eg most food and children’s clothes |
Is the place of supply of services in the UK subject to VAT?
If the supply is in the UK it is subject to UK VAT. If the supply is in an EU member state or another country it is said to be ‘outside the scope’ of UK VAT. If you belong in the UK and the place of supply of your services is the UK, you must charge any UK VAT due and account for it to HMRC regardless of where your customer belongs.
Do you need to register for VAT in the country of supply?
But for some supplies, you may need to register and account for VAT in the country of supply. You must check with the tax authority in that country to find out how to treat the services you’re supplying. A list of EU VAT contacts can be found in Notice 725. If the place of supply…
Do you have to charge VAT when you do business in the UK?
You can see a full list of special rules to certain services on the UK Government website. Under the general rule, if your UK business is providing services to the US and the place of supply is the US, then this transaction will be outside the scope of VAT. You will not need to charge VAT and can mark this on box 6 of your VAT return.
Can a UK company supply services to a contractor?
If a UK (VAT registered) customer receives services from an EC supplier who isn’t VAT registered in their home country, the UK customer still needs to apply a R/C on the supply regardless – even though there’s no VAT number. Is this correct? Provided the supplier is in business.
