V4.401 The reduced rate—overview
This paragraph provides an overview of the reduced rate of VAT and links to more detailed commentary on items which are subject to this VAT relief.
Goods and services which are reduced rated in the UK
The UK currently operates a reduced rate of VAT of 5% for a variety of descriptions of supplies and their equivalent importation1.
The descriptions of supplies and imports subject to this reduced rate are set out in VATA 1994, Sch 7A2.
Prior to IP completion day3 the reduced rate also applied to acquisitions from EU member states but the concept of acquisitions was broadly abolished in the UK after this date as a result of the UK's departure from the EU.
The provisions of VATA 1994, s 7A continue to apply in respect of acquisitions in Northern Ireland4 (which largely remains subject to EU VAT rules in respect of goods). For Northern Ireland acquisitions, see V3.602.
This division contains details of the reduced ratings which apply
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Web page updated on 17 Mar 2025 14:01