Retail schemes

V3.551 Introduction


HMRC may, under regulations1 made under VATA 1994 Sch 11 para 2(6), permit retailers to calculate the value of their taxable (other than zero-rated)2 supplies by reference to3


    (1)     a scheme agreed with HMRC4; or


    (2)     a scheme specified in a notice published by HMRC for that purpose.

A retail scheme may not, however, be used in conjunction with the flat-rate scheme for small businesses5.

Meaning of “retailer”

The term “retailer” is not defined; it is described by HMRC as “retailers that cannot account for VAT using normal accounting”6. Supplies to VAT-registered persons, other than occasional

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