VAT codes explained
Which code to use on each line, and where it ends up.
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 VAT return.
| Code | Name | Use it for |
|---|---|---|
| VAT20 | Standard rate 20% | Most goods and services |
| VAT5 | Reduced rate 5% | Domestic energy, children's car seats |
| VAT0 | Zero rate | Most food, books, children's clothes |
| EXEMPT | Exempt | Insurance, finance, some education and health |
| REVERSE_CHARGE | Reverse charge | Construction services under the domestic reverse charge, some services from abroad |
| OUT_OF_SCOPE | Outside the scope | Wages, loans, drawings |
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