What items are VAT exempt in the UK?

UK VAT Legislation - zero rated and exempt items

• Where can I find a simple(ish) summary of UK VAT rules as to what item categories are VAT exempt, zero rated ot at a reduced rate. I was specifically to find out if a nursery place for my daughter is VATable, but am interested in a general list for future reference.

• Answer:

  Hi! Thanks for the question. Please note that in the disclaimer mentioned below, the following answer is general information and does not substitute for professional legal advice. All the explanations are based on the HM Customs & Excise, the regulating body for UK VAT laws. The following lists are also subject to exceptions as noted in the HM Customs & Excise website. What are VAT exempt supplies? “The main business activities that are exempt from VAT are the sale and letting of land, financial and insurance services, postal services, education, sport, and burial and cremation services.” “What are exempt supplies?” http://www.bcentral.co.uk/finance/tax/vatfaq/Exempt.asp “Is VAT payable on exempt supplies?” (An official explanation including instances of exceptions) http://www.hmce.gov.uk/forms/notices/700-a5.htm#P258_18547 What are considered zero rated items for VAT? “The general categories of zero-rated goods and services are food, sewerage and water services, books, construction of buildings, international services, transport, caravans and houseboats, gold, bank notes, drugs, medicines, imports and exports, tax-free shops, charities, clothing and footwear.” “What goods and services are zero-rated for VAT?” http://www.bcentral.co.uk/finance/tax/vatfaq/Zero-rated.asp “Is VAT payable on zero-rated supplies?” (An official explanation including instances of exceptions) http://www.hmce.gov.uk/forms/notices/700-a5.htm#P296_22961 What supplies are reduced rated? - Domestic fuel or power; - Installation of energy saving materials; - Grant funded installation of heating equipment or security goods or connection of gas supply; - renovation and alteration of dwellings; - residential conversions; - women's sanitary products; and - children's car seats. “What supplies are reduced-rated?” http://www.hmce.gov.uk/forms/notices/700-a5.htm#P296_22961 If you want to call the HM Customs & Excise here is their contact page. HM Customs & Excise – Contact Page http://www.hmce.gov.uk/contact/index.htm Search terms used: UK VAT law summary UK VAT exempt supplies I hope these links would help you in your research. Before rating this answer, please ask for a clarification if you have a question or if you would need further information. Thanks for visiting us. Regards, Easterangel-ga Google Answers Researcher