GS1 UK has reissued code list 12 (VAT category codes) of the TRADACOMS standard suite to avoid a potential dual application of a VAT code list value that has recently come to our attention, and to cater for the new UK domestic reverse charge.

In the year 2000, a new VAT rate of 5% was introduced by the Government for sanpro items. As it was a new rate of VAT, a new code list entry was required in TRADACOMS. Following consultation with HMRC, the code ‘M’ was allocated to code list 12 to support the new 5% rate. However, the code list value ‘M’ is also used for utility supply (withdrawn bills) and signifies ‘Lower rate in withdrawn bill’. Consequently there is a theoretical possibility that users of the TRADACOMS standard may currently be using the code list value 'M' to signify two different VAT treatments.

Whilst it is most unlikely that utility companies supply sanitary products and vice versa, it is clearly beneficial to TRADACOMS users all to ensure that there is clarity regarding the use of VAT codes in TRADACOMS. To this end, GS1 UK has reviewed the VAT category codes and  taken the following course of action:

1. As there is now only one lower rate of VAT, we have withdrawn ‘M’ for ‘low-low rate’ and advise all users to adopt 'L' for lower rate instead ('L' is already a defined code list value in TRADACOMS).
2. We advise TRADACOMS users in the utility sector to continue to use ‘M’ for ‘lower rate in withdrawn bill’.

Copy of revised code list [format: pdf - size: 31.99kb]