Updated VAT retail scheme notice
HMRC have issued the latest version of VAT Notice 727/2 entitled ‘Bespoke Retail Schemes’. The notice cancels and replaces the previous version of the notice that had been issued in March 2006.
A bespoke retail scheme is a method of determining output tax on retail sales made by large businesses which are:
- Ineligible to use the published retail schemes (annual VAT exclusive retail turnover exceeds £130 million), and
- Unable to account normally.
The notice has been updated to:
- Reflect the amended turnover limit for use of the published retail schemes.
- Include a suggested model framework for a bespoke retail scheme agreement.
- Withdraw the requirement for bespoke retail scheme agreements to include annual reviews.
- Introduce the option of signing up to a scheme gradually when HMRC and a business can’t reach full agreement initially.
- Explain the circumstances under which HMRC may permit estimation of Daily Gross Takings (DGT) adjustments.