VAT codes explained

Which code to use on each line, and where it ends up.

Updated 3 November 2026 · Plain 0.110.0

Every invoice, bill and credit note line has a VAT code. The code decides how much VAT is charged and where the line goes on your VAT3 return.

CodeNameUse it for
VAT23Standard rate 23%Most goods and services
VAT135Reduced rate 13.5%Cleaning, repairs, energy, some building work
VAT9Second reduced rate 9%Newspapers, some sporting facilities
VAT0Zero rateExports, most food, children's clothes
EXEMPTExemptFinancial, medical and education services
REVERSE_CHARGEReverse chargeServices from other EU countries, some construction