In shops Any VAT due is already included in the price of something you buy in a shop. No tax is added when you pay. Some shops offer tax-free shopping for visitors and EU residents who leave the EU for 12 months or more. In adverts, catalogues and price lists This depends on who they’re aimed at. If they’re for: the general public only, they’ll show you a price including VAT businesses as well as consumers, they might show the price with VAT and without businesses only they do not usually include VAT , which is charged on top of the price shown On bills and receipts Sometimes VAT is shown on a separate line. This does not mean you’re paying extra - it just shows how much tax is included in the price. Invoices from suppliers like builders, painters and decorators must show a separate amount for VAT and their VAT registration number. How VAT is worked out When someone charges you VAT they multiply their selling price by the VAT rate to calculate the amount of VAT to charge. They then add this to the selling price to give you the price you actually pay - this is called the ‘gross’ price.

VAT on energy-saving products

You pay a reduced rate of VAT (5%) when certain energy-saving products are installed in your home. Your supplier will charge you the reduced rate on the installation and any extra work that’s part of it. Not all products qualify for the reduced rate and you cannot install them yourself. Energy products that qualify You pay the reduced rate of 5% for: controls for central heating and hot water systems draught insulation, for example around windows and doors insulation on walls, floors, ceilings, lofts, etc solar panels wind turbines water turbines ground-source heat pumps air-source heat pumps micro combined heat and power units wood-fuelled boilers Central heating systems You pay the reduced rate of 5% for work funded through energy efficiency grants on the: installation of heating appliances installation, repair and maintenance of central heating systems installation, repair and maintenance of renewable source heating systems The reduced rate is only for the grant-funded part of the work. To qualify, you must be over 60 or getting one or more of the following: Child Tax Credit (but not the family element) Council Tax Benefit Disability Living Allowance Personal Independence Payment a disablement pension Housing Benefit Jobseeker’s Allowance (income-based) Income Support War Disablement Pension Working Tax Credit Energy products that do not qualify You pay the standard rate of VAT for: heating appliances or systems - unless you get an energy efficiency grant energy efficient boilers secondary or double glazing low emission glass energy efficient fridge freezers

If you’re over 60, you pay a reduced rate of VAT (5%) on certain mobility aids when you pay for them to be supplied and installed in your home. Qualifying products You can get the reduced rate on: grab rails ramps stair lifts bath lifts built-in shower seats or showers containing built-in shower seats walk-in baths with sealable doors You do not get the reduced rate if you repair or replace the goods after they’ve been installed. You do not have to order and pay for the product yourself - a friend, local council, charity or housing association can do it for you. How to get the reduced rate Your supplier should know about the reduced rate and apply it. You qualify if: you’re over 60 when the product is supplied or installed the product is installed - you do not get the reduced rate if you just buy it the product is for a private home, for example your own home or one shared with friends or relatives (a residential care home does not qualify) You’ll need to confirm to your supplier in writing that you meet these conditions. They may give you a form, or you can sign your own declaration. Ask a relative, partner or other responsible person if you’re not able to fill it in yourself. Declaration: mobility aids for older people Sign and date the declaration, using this standard wording. I [full name] of [the address where the installation is taking place] declare that I am aged 60 or over and that this supply and installation qualifies for the reduced rate of VAT in accordance with The Value Added Tax (Reduced Rate) Order 2007. Help from your council If you need to adapt your home because of old age you can apply to your council for equipment or help .

You can sometimes get VAT refunds on goods bought in the UK if you: visit the UK but live outside the UK or EU and are going back home are leaving the EU for 12 months or more and are a UK or EU resident, or you work or study in the UK Not all retailers offer tax-free shopping and you can only get VAT refunds for goods bought within the last 3 months. How to get a VAT refund Get a VAT 407 form from the retailer - they might ask for proof that you’re eligible, for example your passport. Show the goods, the completed form and your receipts to customs at the point when you leave the UK or EU. Customs will approve your form if everything is in order. You then take the approved form to get paid. If you’re changing planes in an EU country and checking your goods with your luggage, you must do step 2 in the UK when you check in. Getting paid You can either get paid immediately at a refund booth, for example at the airport, or send the approved form to the retailer or their refund company. The retailer will tell you how you’ll get paid. Some retailers charge a fee for handling your form. This money will be deducted from your refund. If there are no customs officials available, you can leave your form in a customs post box. Customs will check it and contact your retailer to arrange the refund if everything is in order. Goods you cannot get a refund for You cannot get a VAT refund for: mail order goods, including internet sales, delivered outside of the UK goods you’ve already used in the UK or EU, such as perfume service charges, such as hotel bills new or used cars goods worth more than £600 exported for business purposes goods to be exported as freight goods that need an export licence (except antiques) unmounted gemstones gold over 125g, 2.75 troy ounces or 10 tolas a boat you plan to sail to a destination outside the UK or EU

Alcohol and tobacco duties

Tobacco Duty is included in the price you pay for cigarettes, cigars and other tobacco products. Alcohol duties are included in the price you pay for beer, cider or perry, wine or ‘made-wine’, and spirits. Made-wine is any alcoholic drink made by fermentation that’s not beer, cider, perry, spirits or wine. You also pay standard rate VAT at 20% on alcohol and tobacco products. Tobacco Duty You pay different rates of Tobacco Duty on cigarettes, cigars and other tobacco products. Tobacco product Rate Cigarettes 16.5% of the retail price plus £4.75 on a packet of 20 Cigars £2.96 on a 10g cigar Hand rolling tobacco £7.60 on a 30g packet Other smoking tobacco and chewing tobacco (for example pipe tobacco) £3.90 on a 30g packet Beer Duty How much Beer Duty you pay depends on the beer’s strength, or ‘alcohol by volume’ ( ABV ). Strength (ABV) Beer Duty rate per litre for each % of alcohol More than 1.2%, up to 2.8% 8.42 pence More than 2.8%, up to 7.5% 19.08 pence More than 7.5% 24.77 pence Example You buy a pint of 5.0% strength lager. The Beer Duty you pay is 19.08p x 5.0 = 95.40 pence per litre. This works out at just over 54 pence a pint (about 568ml or 0.568 litres). Cider Duty You pay Cider Duty on cider and perry. How much depends on the strength and whether it’s still or sparkling. Type of cider or perry Strength (ABV) Rate per litre Still More than 1.2% but less than up to 6.9% 40.38 pence Still At least 6.9%, up to 7.5% 50.71 pence Still More than 7.5% but less than 8.5% 61.04 pence Sparkling More than 1.2%, up to 5.5% 40.38 pence Sparkling More than 5.5% but less than 8.5% 288.10 pence Wine Duty How much Wine Duty you pay depends on the strength of the wine (or made-wine) and whether it’s still or sparkling. Type of wine or made-wine Strength (ABV) Rate per litre Still More than 1.2%, up to 4% 91.68 pence Still More than 4%, up to 5.5% 126.08 pence Still More than 5.5%, up to 15% 297.57 pence Still More than 15%, up to 22% 396.72 pence Sparkling More than 5.5% but less than 8.5% 288.10 pence Sparkling More than 8.5%, up to 15% 381.15 pence You pay duty on wine and made-wine of more than 22% ABV at the same rate as spirits. Spirit Duty You pay £28.74 of Spirit Duty per litre of pure alcohol. Example The Spirit Duty you pay on a 1 litre bottle of 40% ABV vodka is 40% of £28.74, or £11.50.

Fuel Duty is included in the price you pay for petrol, diesel and other fuels used in vehicles or for heating. You also pay standard rate VAT at 20% on most fuel, or the reduced rate of 5% on domestic heating fuel. Fuel Duty rates The rate you pay depends on the type of fuel. Type of fuel Rate Petrol, diesel, biodiesel and bioethanol 57.95 pence per litre Liquefied petroleum gas ( LPG ) 31.61 pence per kg Natural gas used as fuel in vehicles, for example biogas 24.70 pence per kg ‘Fuel oil’ burned in a furnace or used for heating 10.70 pence per litre You pay different rates on other types of fuel , depending on how they’re used. You may have to pay a penalty and could have your vehicle seized if you use ‘rebated’ oils like red diesel or kerosene on public roads. Report red diesel used on public roads to the Customs Hotline.

Different gambling duties are included in the cost of: bingo casino games betting at a bookmaker’s pool betting, for example football pools lottery tickets fruit or quiz machines online or telephone gambling Gambling duty rates The rate and type of gambling duty depends on the type of gambling. Type of gambling Duty Rate Bingo Bingo Duty 10% Casino games Gaming Duty Between 15% and 50%, depending on how much money the casino makes Normal betting at a bookmaker’s General Betting Duty 15% Financial spread betting General Betting Duty 3% Other types of spread betting General Betting Duty 10% Pool betting (for example football pools) Pool Betting Duty 15% National Lottery tickets Lottery Duty 12% Fruit or quiz machines with a prize up to £10 that cost up to 20 pence to play Machine Games Duty 5% All other fruit or quiz machines Machine Games Duty 20% Online or telephone gambling Remote Gaming Duty 15%

Insurance Premium Tax

Insurance Premium Tax ( IPT ) is usually included in the price you pay for insurance. You do not pay VAT on insurance. The rate of IPT depends on the type of insurance and who supplies it. Standard rate IPT The rate is 12% on most types of insurance, including car, pet and home insurance. Higher rate IPT There’s a higher rate of 20% for travel insurance, and insurance arranged by the supplier (rather than an insurance company) on: vehicles, including hired vehicles - but the standard 12% rate is charged on ordinary motor insurance electronic goods and other household appliances - this includes gas central heating but not mobile phones Exemptions There’s no IPT on life insurance and income protection insurance.

Air Passenger Duty ( APD ) is usually included in the price you pay for flights from the UK. You do not pay VAT on the cost of flights. How much you pay depends on the distance and class you travel in. There are exceptions for flights from Northern Ireland and the Scottish Highlands and Islands. Reduced rate APD This is normally charged on the lowest class of travel available on the aircraft. However, if there’s more than 40 inches between each row of seats the standard rate is charged. Band Distance from London Amount you pay A Up to 2,000 miles £13 B Over 2,000 miles £80 Standard rate APD This is charged on any other class of travel in most aircraft. Band Distance from London Amount you pay A Up to 2,000 miles £26 B Over 2,000 miles £176 Higher rate APD This is charged on travel in aircraft weighing 20 tonnes or more that are only equipped to carry up to 18 passengers, for example private or business jets. Band Distance from London Amount you pay A Up to 2,000 miles £78 B Over 2,000 miles £528 Flights from Northern Ireland There’s no APD charged on direct long-haul flights from Northern Ireland. This includes all flights where the first part of the journey is to a destination outside Band A. Flights from the Scottish Highlands and Islands There’s no APD charged on flights departing from airports in the Scottish Highlands and Islands region .

Tax on shopping and services

VAT and duties

VAT is a tax you pay on most goods and services.

Rate	% of VAT	What the rate applies to
Standard	20%	Most goods and services
Reduced rate	5%	Some goods and services, for example children’s car seats and some energy-saving materials in the home
Zero rate	0%	Zero-rated goods and services, for example most food and children’s clothes

Check the VAT rates on different goods and services. Some things are exempt from VAT, such as postage stamps and some financial and property transactions.

VAT is normally included in the price you see in shops, but there are some exceptions.

VAT and disabled people

You do not have to pay VAT on certain goods and services if they’re just for your own use and you’re disabled or have a long-term illness.

Other taxes and duties

You pay different taxes on:

alcohol and tobacco
petrol, diesel and other fuel
gambling
insurance
flights
goods from abroad if you go over your customs allowance

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Tax on shopping and services

VAT and duties

VAT and disabled people

Other taxes and duties

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Tax on shopping and services

VAT and duties

VAT and disabled people

Other taxes and duties

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