Commentary

727/2/20 Bespoke VAT Retail Schemes

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

727/2/20 Bespoke VAT Retail Schemes

Part V8 HMRC Notices | Commentary

727/2/20
Bespoke VAT Retail Schemes

January 2020

This notice cancels and replaces Notice 727/2 August 2011.

1 Overview

1.1 What this notice is about

This notice explains when you need to agree a bespoke retail scheme with us. It explains the general rules applicable to bespoke retail schemes, how a bespoke agreement should be structured and what records you should keep.

Main narrative treatment—V3.551–V3.576.

1.2 Who should read this notice

You should read this notice if:

  1.  

    •     you're a VAT-registered business making retail sales

  2.  

    •     you are unable to account for VAT on those sales in the normal way (paragraph 2.2)

  3.  

    •     your annual VAT exclusive retail turnover exceeds £130 million

1.3 Force of law

Parts of this notice have the force of law under powers contained in regulations 66-75 of the VAT Regulations 1995, ('the Regulations') that enable the Commissioners to determine a retail scheme method in a notice published by them.

Paragraphs 2.3, and 3.3 have force of law. We tell you in this notice where force of law applies.

1.4 Other VAT retail schemes

You will find a general introduction to retail schemes as well as guidance on choosing a retail scheme in Retail schemes (VAT Notice 727).

Details of the other schemes can be found in:

  1.  

    •     727/3 for Point of Sale VAT Retail Scheme

  2.  

    •     727/4 for Apportionment VAT Retail Schemes

  3.  

    •     727/5 for Direct Calculation VAT Retail Schemes

If you need any further help or advice, contact the VAT general enquiries helpline.

2 General rules

2.1 Who can use a retail scheme

Retail is the selling of goods or services to consumers

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