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Overview of the global accounting scheme

By way of simplification of the system of accounting for VAT on supplies under the margin scheme, the global accounting scheme enables a taxable dealer to opt to account for VAT on the total profit margin on goods supplied by them during a prescribed accounting period rather than on an item by item basis. The use of the global accounting scheme is optional¹.

One advantage of the scheme is that, unlike the other margin schemes, it allows the offsetting of a loss on one transaction against profits made on others.

Conditions for using the global accounting scheme

The global accounting scheme may be used to account for VAT on goods which²:

1. Ìý

   •ÌýÌýÌýÌý have a purchase price³ of £500 or less per individual item (including bulk purchases with a total purchase price in excess of £500, except for any individual items costing more than £500 included