Retail schemes — Point of Sale

Produced by Tolley

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Retail schemes - Point of Sale
  • Basic requirements
  • Can other schemes be used with the POS scheme?
  • Operating the POS scheme
  • Books and records
  • VAT return
  • Daily Gross Takings
  • Exports
  • Errors
  • Adaptations
  • More...

Retail schemes - Point of Sale

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:

  1. Retail schemes - overview

  2. Retail schemes - Apportionment

  3. Retail schemes - Direct Calculation

  4. Bespoke retail schemes

  5. Retail schemes - specific industries

SI 1995/2518, Pt IX, regs 66–75

Basic requirements

Businesses can use the POS scheme if they:

  1. make retail sales

  2. are unable to account for VAT using the normal VAT accounting rules

  3. have a total annual retail turnover, excluding VAT, of not more than £130m, and

  4. 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.

Can other schemes be used with the POS scheme?

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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