VAT rate UK. Which are the VAT rates in England? Which VAT is applicable in Great Britain? What is the reduced value-added tax rate in the UK? Which is the British standard VAT level? What is the typical UK VAT rate?
UK VAT number format
Format for the EU VAT number: GB000000000, GB0000000000005, GBGD0006 or GBHA000.
What is the standard VAT rate in the UK?
The standard UK VAT rate: 20%
What is the reduced VAT rate in the UK?
Reduced UK VAT rate: 5%
(heating oil and electricity, energy-saving materials (will possibly change), renovations, conversions, and refurbishments,
car seats for children, contraception, installation of facilities for the elderly, smoking cessation products, welfare counselling, sanitary products for women, grant-funded installation or connections of the heating equipment, safety products, and gas supply, as well as some caravans)
Zero GB VAT rate: 0%
The UK, in addition to the standard VAT exempt services like banking and insurance, also have a quite extensive zero-VAT system which includes: some groceries, sewerage services, and water, printed books and audiobooks for the blind, but e-books are 20%, construction of houses, transportation, gold, medicines and aids for the disabled, clothes and shoes for children, particular sales from charities and some types of caravans.
Are Scotland, Wales and Northern Ireland included in the UK VAT system?
Scotland, Wales and Northern Ireland are included in United Kingdom of Great Britain for the purpose of VAT and all territories have the same VAT as the stated VAT rate for the UK.
The Isle of Man is also included which is not as obvious. It has been switching affiliation between Norway during the Viking Age and then Scotland and England alternately. It is formally not part of the UK today (but is subordinate to the British royal family and the Queen..) but it is classified to the UK for VAT purposes since 1979. If you sell something to a private person or a company on the Isle of Man, this should count as a sale to the UK, and hence this will be a sale inside the EU from a VAT perspective. The same applies if you buy anything from the Isle of Man, then it would count as a purchase inside the EU for your records and accounting.
Electronic services in the UK
When you, as a foreign EU company, are selling digital products or electronic services to a private individual in the UK, you should generally invoice with 20% VAT (UK VAT).
Threshold for distance sales to England (UK)
What is the limit for sales to the UK? If you have traded with Great Britain with sales exceeding £70,000, then you must register for VAT in Britain and then pay VAT-tax in the UK, and also file and report VAT in the UK.
Limit threshold registration requirement for distance selling: £70,000
How to register for VAT in the UK?
Guide for VAT registration in the UK
England is very generous to small business owners. Do you have sales below £82,000 per year in the UK you will not have to register for VAT! That is a good reason to look into moving out to the British islets if you are a freelancer for example. This is a rather high limit, as you can see in this comparison table of VAT registration limits in other countries. The mainland Europe has significantly lower borderlines for when you need to register for sales tax.
Exemption of VAT on the British Isles
British Overseas Territory consisting of Anguilla, British Antarctic, British Virgin Islands, British Indian Ocean Territory, Cayman Islands, Falkland Islands, Montserrat, Pitcairn, Saint Helena, Ascension and Tristan da Cunha, South Georgia and the South Sandwich Islands and the Turks and Caicos Islands. These British overseas territories are not included in the EU VAT and customs union. They are not included in the EU VAT area.
Those living in these areas have received British citizenship in the year 2002, and thus people from these territories are actually European citizens and can work in the EU countries on the same terms as the “real” Europeans. But if you sell something to a company or a person in the aforementioned areas this would be treated as exports outside the European Union (just as the Finnish Åland Island).
Then we have the really intricate exceptions: The British Channel Islands (Jersey, Guernsey, Alderney, Sark, and Herm) and the semi-British area of Gibraltar, south of Spain. As for the islands, they are in some contexts regarded to be within the EU and sometimes not. You can read more details about what applies for example to Guernsey here. The important thing for us in this context is whether they are considered to be within the EU VAT area or not?. As for that question, the answer is clear: The British Channel Islands are not part of the EU VAT area. Trades to and from these islands and Gibraltar will, therefore, count as exports outside the EU or imports into the EU if you buy goods or services from there.
Where do I check GB VAT number?
I need to calculate a price without VAT