Apportionment VAT Retail Schemes
This notice cancels and replaces Notice 727/4 (June 2018).
This notice applies to supplies made on or after 1 January 2021. It applies to supplies of:
• services made within and between Great Britain and Northern Ireland
• supplies of goods made within Great Britain and within Northern Ireland. References to UK should be construed accordingly.
Exports of goods from Great Britain and Northern Ireland are covered in Notice 703 'Exports'.
Sales of goods between Northern Ireland and the EU are covered in Notice 725 'Single Market'.
1.1 What this notice is about
This notice tells you about Apportionment Schemes 1 and 2, (these are 2 of the standard retail schemes). It explains the general rules applicable to the schemes, how the schemes work (including the calculation of VAT), and what records you should keep – especially your daily gross takings (DGT) records and, for Apportionment Scheme 2, your expected selling prices (ESP) 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 para 2.1)
• your annual retail turnover, excluding VAT, does not exceed £130 million.
1.3 Other retail schemes
The other standard retail schemes are the Point of Sale Scheme and the Direct Calculation Scheme.
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