How VAT Apportionment Scheme Works doshioutsourcing.com

A retail business is the one that sells directly to the public and so it may find it difficult to issue a VAT invoice for each sale. Such examples are small convenience stores where many transactions are for less than £1, but which will include VAT. In such cases, it is difficult to issue a VAT receipt for each sale and it is time-consuming to record each sale separately to show the VAT in detail. VAT Retail Schemes, such as the apportionment scheme come in handy as it allows a simpler recording of VAT.

Under the retail schemes, sales to other VAT registered businesses must be accompanied by a VAT receipt and if a customer requests a VAT receipt then one must be provided.

Retail schemes can be used in conjunction with the cash accounting scheme and the annual accounting scheme.