V3.551 Retail schemes—overview
This paragraph provides and overview of retail schemes and refers to further detailed commentary on the subject.
General principles of retail schemes
Retail schemes are an output tax simplification used by retailers to arrive at the value of taxable retail sales and to determine the proportion of sales that are subject to different rates of VAT. the essential purpose of such schemes is to alleviate the burden on retailers to calculate VAT on every transaction they make and instead allow the retailer to calculate VAT once with each VAT return1.
There are three broad categories of retail scheme that may be described as 'standard' (although there are technically five standard schemes). These are the retail schemes which are set out in notices
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