Point of Sale VAT Retail Scheme
This notice cancels and replaces Notice 727/3 (January 2013).
1.1 What this notice is about
This notice tells you about the Point of Sale Scheme, one of the standard Retail Schemes. It explains the general rules applicable to the scheme, how the scheme works (including the calculation of VAT), and what records you should keep, especially your daily gross takings (DGT) records.
Main narrative treatment—V3.551–V3.576.
1.2 Who should read this notice
You should read this if:
• you're a VAT-registered business making retail sales
• you are unable to account for VAT on those sales in the normal way (see paragraph 2.2)
• your annual turnover, excluding VAT, does not exceed £130 million.
1.3 Other retail schemes
The other standard retail schemes are the apportionment schemes and direct calculation schemes.
Businesses whose annual retail turnover exceeds £130 million cannot use a standard scheme. Instead they can agree a bespoke retail scheme (see paragraph 2.8).
You will find a general introduction to retail schemes as well as guidance on choosing a retail scheme in Notice 727.
Details of the other schemes can be found in:
• Notice 727/2 for bespoke VAT retail schemes
• Notice 727/4 for Apportionment VAT Retail Schemes
• Notice 727/5 for Direct Calculation VAT Retail Schemes
1.4 Force of law
Parts of this notice have the force of law under powers contained in regulations 66 to 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