VRS2200 - Eligibility and refusal to allow use of a retail scheme: What is normal accounting?

For the purposes of a retail scheme, normal accounting means that the business establishes output tax liability without using a retail scheme.

It does not imply a requirement to issue a tax invoice for every supply since, under Regulation 16 of the VAT General Regulations 1995, retailers are not required to issue one, unless one is requested by a customer who is a taxable person.

Normal accounting records the value, rate and amount of VAT at line or transaction level. For example, a petrol receipt, and thus the retailer바카라 사이트™s accounting system, may show the net, VAT and total amounts. This is normal accounting.

Examples of retailers who could perhaps be reasonably expected to use normal accounting are:

  • businesses supplying goods or services at one rate of tax - petrol retailers, furniture retailers, carpet retailers, jewellery retailers and retailers who sell electrical goods;
  • sales on credit terms;
  • sales by mail order; and
  • motor dealers/repairers.