Which goods will benefit from reduced rates of transaction tax under the 2026 UK/EU Treaty for Gibraltar?
Short answer
A super-reduced rate of 0% applies to foodstuffs, water, pharmaceutical products, medical equipment, books/newspapers, and solar panels. A reduced rate of 5% applies to agricultural goods, live equines, plants, children's clothing/footwear, children's car seats, bicycles, works of art, and rescue equipment. These categories are aligned with EU VAT Directive Annex III.
Detailed answer
A reduced rate of 5% and a super-reduced rate of 0% will apply to certain goods aligned with EU VAT Directive Annex III. Super-reduced rate of 0%: Foodstuffs for human and animal consumption; water; pharmaceutical products; medical equipment and aids for the disabled; books, newspapers and periodicals; solar panels. Reduced rate of 5%: Agricultural goods (excluding capital goods); live equines; plants and floricultural products; children's clothing and footwear; children's car seats; bicycles including electric; works of art, collectors' items and antiques; rescue and first aid equipment for public/non-profit bodies.