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:

  • periodicals
  • certain e-periodicals. This excludes:
    • those which wholly or predominantly are devoted to advertising
    • or
    • 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 01 November 2020 to 31 August 2023, the following supplies 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
  • and
  • certain printed matter such as brochures, leaflets, catalogues or printed music (excluding books).

From 01 September 2023, the reduced rate of VAT applies to the above supplies.

For the period from 01 May 2022 to 31 October 2024, the following supplies 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
    • and

    • gas sold as lighter fuel.

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