The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the Point of Sale (POS) retail scheme requirements. This note should be read in conjunction with the following guidance notes:
Retail schemes - overview
Retail schemes - Apportionment
Retail schemes - Direct Calculation
Bespoke retail schemes
Retail schemes - specific industries
SI 1995/2518, Pt IX, regs 66–75
Businesses can use the POS scheme if they:
make retail sales
are unable to account for VAT using the normal VAT accounting rules
have a total annual retail turnover, excluding VAT, of not more than £130m, and
can produce a fair and reasonable result using this scheme
Businesses are required to use the POS scheme if they meet the above requirements and they only supply goods or services that are liable to one VAT rate (eg all sales are liable to VAT at either the standard or reduced rate). If the business makes supplies that are liable to VAT at two different rates and it can identify the applicable VAT rate at the time of sale, it can choose to use the POS scheme but it is not obligatory.
Provided that the business is eligible to use the schemes, it can mix the Point of Sale scheme with either a Direct Calculation or an Apportionment Scheme. However, it cannot use different versions of the Apportionment Scheme and it must not mix a Direct Calculation Scheme with an Apportionment Scheme. The retail scheme normally uses a
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