VAT Retail Schemes
If you sell to the general public, especially high quantities of relatively inexpensive items, it can be difficult, time consuming and costly to issue a VAT invoice each time you make a sale, and account for VAT. There are several VAT accounting schemes that retailers can use instead of accounting for VAT in the standard way. These can help simplify your retail VAT accounting.
There are a number of different standard retail schemes, or depending on your business, you may be able to agree a bespoke VAT retail scheme with HM Revenue & Customs (HMRC). If your turnover is over certain limits, you can only use a bespoke scheme.
The benefits of using a retail scheme
You do not need to record VAT separately in your accounts for each and every retail sale you make. This is particularly beneficial if you make a number of low value and/or small quantity sales to the general public. This can save you a lot of time and record keeping.
Types of Retail Scheme and how they work
