Value Added Tax (VAT) in Scotland

Value Added Tax (VAT) is the sales tax businesses in Scotland must charge on the goods and services they provide. Find out about rates and exemptions.

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Value Added Tax (VAT) is the sales tax businesses in Scotland and the rest of the UK must charge on the goods and services they provide. However, there are some exemptions. As a business in Scotland, you must register with HM Revenue & Customs (HMRC) and pay this tax.

Your VAT rate depends on the goods or services you provide.

  • The standard rate is 20%
  • A reduced rate of 5% may also apply to certain supplies such as utilities
  • A zero rate applies to certain supplies such as books and children’s clothes

Get advice

VAT regulations and administrative requirements are complex. You should seek specialist advice from a solicitor or accountant to ensure you are paying the correct rate of VAT.