United Kingdom VAT codes and rates
United Kingdom charges VAT at 20%, with other rates of 5%. When you create a company in United Kingdom, Nefin sets up 7 sales and 8 purchase codes, each tied to a box of the VAT Return (VAT100). Every invoice and bill line carries one, so the return's totals add themselves up as you work. They fill the VAT Return - sales and the VAT Return - purchases, ready to file every quarter.
VAT codes from the VAT Return (VAT100)
Each code is the box or line it fills on the VAT Return (VAT100), named in the authority’s own wording. Pick one on an invoice or bill line and the amount lands in that box.
| Code | What it covers | Rate |
|---|---|---|
| 6-STD | Standard-rated sales 20% (Box 6)Default | 20% |
| 6-RED | Reduced-rated sales 5% (Box 6) | 5% |
| 6-ZR | Zero-rated sales 0% (Box 6) | 0% |
| 6-EX | Exempt sales (Box 6) | 0% |
| 6-EXP | Exports and services supplied outside the UK (Box 6) | 0% |
| 6-RC | Domestic reverse-charge sales, customer accounts for VAT (Box 6) | 0% |
| 8 | NI goods supplied to EU member states (Box 8) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| 7-STD | Standard-rated purchases 20% (Box 7)Default | 20% |
| 7-RED | Reduced-rated purchases 5% (Box 7) | 5% |
| 7-ZR | Zero-rated or exempt purchases (Box 7) | 0% |
| 7-ND | Purchases 20% with non-reclaimable VAT (Box 7) | 20% |
| 7-PVA | Imports, postponed VAT accounting 20% (Box 7, 1, 4) | 0% |
| 7-RCS | Services from abroad, reverse charge 20% (Box 7, 1, 4) | 0% |
| 7-RCD | Domestic reverse-charge purchases 20% (Box 7, 1, 4) | 0% |
| 9 | NI acquisitions of goods from the EU 20% (Box 9, 2, 4) | 0% |
United Kingdom VAT books
One row per invoice or bill, one column per return box. Nefin builds both books from the codes above.
Sales book
VAT Return - sales
Box 6 - sales and other outputs
- [6-STD]Standard-rated 20%
- [6-RED]Reduced-rated 5%
- [6-ZR]Zero-rated
- [6-EX]Exempt
- [6-EXP]Exports and services supplied abroad
- [6-RC]Domestic reverse charge
Box 8 - NI goods to the EU
- [8]Goods supplied to EU member states
Totals Nefin calculates
- [6] Box 6 - total value of sales and all other outputsSum of the net amounts in [6-STD] + [6-RED] + [6-ZR] + [6-EX] + [6-EXP] + [6-RC] + [8]
- [1] Box 1 - VAT due on sales (sales part)Sum of the tax charged in [6-STD] + [6-RED]
Purchase book
VAT Return - purchases
Box 7 - purchases and other inputs
- [7-STD]Standard-rated 20%
- [7-RED]Reduced-rated 5%
- [7-ZR]Zero-rated or exempt
- [7-ND]Non-reclaimable VAT 20%
Reverse charge and postponed accounting
- [7-PVA]Imports, postponed VAT accounting
- [7-RCS]Services from abroad
- [7-RCD]Domestic reverse charge
Box 9 - NI acquisitions from the EU
- [9]Goods acquired from EU member states
Totals Nefin calculates
- [7] Box 7 - total value of purchases and all other inputsSum of the net amounts in [7-STD] + [7-RED] + [7-ZR] + [7-ND] + [7-PVA] + [7-RCS] + [7-RCD] + [9]
- [1-RC] Box 1 - VAT due on reverse charge and postponed imports 20%Net amount × 20%, from [7-PVA] + [7-RCS] + [7-RCD]
- [2] Box 2 - VAT due on NI acquisitions from the EU 20%Net amount × 20%, from [9]
- [4-IN] VAT charged on purchasesSum of the tax charged in [7-STD] + [7-RED]
- [4-RC] VAT reclaimed on reverse charge, imports and acquisitions 20%Net amount × 20%, from [7-PVA] + [7-RCS] + [7-RCD] + [9]
- [4] Box 4 - VAT reclaimed on purchases and other inputsTotal of [4-IN] + [4-RC]
Source
These codes were transcribed from the tax authority's own form or instructions: HMRC VAT Notice 700/12 (updated 19 Dec 2025) - https://www.gov.uk/guidance/how-to-fill-in-and-submit-your-vat-return-vat-notice-70012.
Frequently asked questions
What is the VAT rate in United Kingdom?
The standard rate is 20%. Other rates in use: 5%. Zero-rated, exempt and reverse-charge transactions use their own 0% codes.
Which VAT codes does Nefin set up for a company in United Kingdom?
7 sales codes and 8 purchase codes, each named after the VAT Return (VAT100) box it fills, for example 6-STD (Standard-rated sales 20% (Box 6), 20%), 6-RED (Reduced-rated sales 5% (Box 6), 5%) and 6-ZR (Zero-rated sales 0% (Box 6), 0%).
How often is the VAT Return (VAT100) filed?
Nefin defaults to quarterly filing, the usual period for a small or medium registered business in United Kingdom. Your tax authority may assign you a different one.
Are these United Kingdom VAT codes official?
Yes. They were transcribed from the tax authority's own form or filling instructions (HMRC VAT Notice 700/12 (updated 19 Dec 2025) - https://www.gov.uk/guidance/how-to-fill-in-and-submit-your-vat-return-vat-notice-70012).
Does Nefin produce the United Kingdom VAT books?
Yes. The VAT Return - sales lists every invoice and the VAT Return - purchases every bill, one row per document with a column for each return box, plus the totals the return asks for.