What are VAT rates?
Second reduced rate of VAT
The second reduced rate of Value-Added Tax (VAT) applies only to certain goods and services, including:
- certain e-books and e-periodicals. This excludes:
- those which wholly or predominantly are devoted to advertising
- consist wholly or predominantly of audio or video content.
- the provision, by a person other than a non-profit making organisation, of facilities for taking part in sport.
For the period from 1 November 2020 to 31 August 2023, the following items are subject to the second reduced rate of VAT
- catering and restaurant supplies (excluding alcohol, soft drinks and bottled water)
- hot take-away food, and hot tea and coffee
- hotel lettings, for example, guesthouses, caravan parks or camping sites
- admissions to cinemas, theatres, certain musical performances, museums, art galleries or exhibitions
- amusement services of the kind normally supplied in fairgrounds or amusement parks
- admission to an open farm
- hairdressing services
- certain printed matter such as brochures, leaflets, catalogues or printed music (excluding books).
The reduced rate of VAT applies to the above items prior to 1 November 2020.
For the period from 1 May 2022 to 31 October 2023, the following items are subject to the second reduced rate of VAT:
- the supply of electricity
- the supply of gas used for domestic or industrial heating or lighting, whether in gaseous or liquid form. This excludes:
- vehicle gas
- liquefied petroleum gas for use as a propellant
- gas for welding or cutting metal
- gas sold as lighter fuel.
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