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Standard rate of VAT.

by | Sep 19, 2020 | Uncategorized

There is a temporary reduction to the standard rate of VAT from September 1st 2020 until the end of February 2021.

The rate is being cut from 23% to 21% as part of the Government July stimulus package. (See the end of the article for more details of this temporary VAT reduction.)

The standard rate of VAT applies to a wide range of goods and services including, for example, the sale of motor vehicles, adult clothing, electrical goods, petrol, diesel, alcohol and tobacco, most household goods, non-basic foodstuffs, many professional services and telecommunications.

All goods and services that do not fall into the reduced rate categories are charged at the standard rate. See below for details of reduced VAT rates.

13.5% : This rate of VAT is charged on items including fuel (coal, heating oil, gas, electricity. (It is 5% in the UK) vet fees, building and building services, agricultural contracting services, short-term car hire, cleaning and maintenance services.

Catering and restaurant supplies, including vending machines and take-away food (excluding alcohol and soft drinks sold as part of the meal) Food Supplements Hotel lettings, including guesthouses, caravan parks, camping sites etc Short term accommodation .

Cinemas, theatres, certain musical performances, museums, art gallery exhibitions Fairgrounds or amusement park services Hairdressing services.

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