VCAS6200 - Cash accounting scheme: Leaving the scheme: Accounting for VAT on leaving the scheme

Businesses who leave the scheme voluntarily, or because the exit limit has been exceeded, after 1 April 2004 may account for outstanding VAT on supplies made whilst using the scheme under Regulation 61:

61(1) Subject to paragraph (2), a person who ceases to operate the scheme, either of his own volition or because the value of taxable supplies made by him exceeds the level provided for in regulation 60(1), must바카라 사이트�

(a) settle up, or

(b) apply transitional arrangements.

61(2) Where the value of taxable supplies made by a person in the period of three months ending at the end of the prescribed accounting period in which he ceased to operate the scheme has exceeded 拢1,350,000, he may not apply transitional arrangements.

61(3) In paragraph (1)(a), 바카라 사이트渟ettle up바카라 사이트� means account for and pay on a return made for the prescribed accounting period in which he ceased to operate the scheme바카라 사이트�

(a) all VAT that he would have been required to pay to the Commissioners during the time when he operated the scheme, if he had not then been operating the scheme, minus

(b) all VAT accounted for and paid to the Commissioners in accordance with the scheme, subject to any adjustment for credit for input tax.

61(4) In paragraph (1)(b), 바카라 사이트渁pply transitional arrangements바카라 사이트� means continue to operate the scheme in respect of his scheme supplies for 6 months after the end of the prescribed accounting period in which he ceased to operate the scheme.

61(5) In paragraph (4), 바카라 사이트渟cheme supplies바카라 사이트� means supplies made and received while he operated the scheme that are not excluded from the scheme by virtue of regulation 57A or 58 or conditions described in a notice.

61(6) Where a person chooses to apply transitional arrangements, he shall account for and pay on a return made for the first prescribed accounting period that ends 6 months or more after the end of the prescribed accounting period in which he ceased to operate the scheme바카라 사이트�

(a) all VAT that he would have been required to pay to the Commissioners during the time when he operated the scheme, if he had not then been operating the scheme, minus

(b) all VAT accounted for and paid to the Commissioners in accordance with the scheme (including any VAT accounted for and paid because he applied transitional arrangements), subject to any adjustment for credit for input tax.

Accounting rules from 1 April 2004

Regulation 61 allows businesses leaving the scheme voluntarily, or because they have exceeded the exit limit, on or after 1 April 2004 to account for all VAT on supplies made and received whilst using the scheme which has not already been accounted for under the scheme:

  • in the period in which they leave the scheme, or
  • during the six month period following the period in which they leave the scheme.