VAT codes VAT codes 01Irrecoverable non-business VATwhen VAT cannot be recovered: on normal administration or programme expenditure eg rent, fuel & utilities, stationery and agency staff amount charged will include the VAT element 02Recoverable non-business VATwhen VAT can be recovered: where contracted out services are covered by the rules amount charged will not include the VAT amount 03Out of scopeGrant in Aid and Grant expenditure, or where the supplier is not VAT registered 04Irrecoverable business VATunlikely to need this code in relation to ACME expenditure 05Recoverable business VATexpenditure that relates to business activities reselling goods or services to someone else unlikely to need this code in relation to ACME expenditure 06Zero-ratedexpenditure zero-rated by HMRC eg newspapers and books 07VAT Exemptexpenditure exempted by HMRC
