It is likely that a retailer may cease to account for output tax on the basis of a retail scheme in three circumstances:
- Ìý
•ÌýÌýÌýÌý it may wish to cease using its current scheme for some financial or administrative reason
- Ìý
•ÌýÌýÌýÌý HMRC may refuse to permit it to continue using his current retail scheme
- Ìý
•ÌýÌýÌýÌý it may cease to meet the conditions of its current retail scheme due to a change in the legislation or a change in its trading pattern
In each case, ceasing to use the current scheme may result in either adopting a new scheme or commencing to account for output tax on the VAT invoice basis.
General rule for changing retail scheme
Regulations1 made under VATA 1994, Sch 11, para 2(6) provide that:
- Ìý
•ÌýÌýÌýÌý once a person has adopted a retail scheme, they must continue to use it for a period of not less than one year counted from the date of adoption
- Ìý
•ÌýÌýÌýÌý a change of scheme must
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Web page updated on 17 Mar 2025 13:55