In your agreement, you must indicate how the following adjustments will be handled by your DGT: 3.2 Both parties enter into this agreement on the basis of full disclosure of the relevant facts. Businesses are required to use the POS system if they meet the above requirements and only supply goods or services subject to a VAT rate (e.g. B, all sales are subject to VAT, either at the standard rate or at the reduced rate). If the company makes VAT-subject supplies at two different rates and can identify the VAT rate in effect at the time of sale, it may choose to use a fundamental error that prevents you from achieving the objectives of your tailor-made agreement during a VAT period. HMRC may withdraw its consent and refuse the use of a pre-agreed system on one of the grounds set out in Regulation 68 of the VAT Regulations 1995, namely: paragraph 4.1 tells you where to contact regarding your proposals for tailor-made retail programmes. A retail scheme cannot change the VAT obligation of the components of a linked supply, it only offers a mechanism for calculating the VAT due. Any change in liability must be agreed outside the system. This table contains instructions on the types of details of your DGT that should be included in your custom agreement. The list is exhaustive. Any special circumstances or transactions that are not listed must continue to be included in your agreement.
If both parties agree that the system is fundamentally defective, HMRC considers the system invalid from the date the error first existed. We believe that such cases will be rare. 3.3 The signing of this agreement confirms that both parties believe that the retail accounting scheme leads to a fair and appropriate result. If you change or verify your custom agreement, you must record the date of modification. You can either do so in: If we have agreed with you on a tailor-made scheme, this agreement will have been concluded as part of a full disclosure of your business structure and business models by that date. You will find a general introduction to retail systems as well as instructions for choosing a retail system in retail systems (VAT Decision 727). c: To determine a fundamental defect that indicates either that the agreed regime was concluded (in whole or in part) on a basis inconsistent with Section 3, or that it has a scope greater than that described in Section 2, subject to the normal rules on capping and the right of both parties to challenge the existence of a fundamental error; the system is considered invalid in whole or in part from the date on which the fundamental error occurred. A tailor-made agreement is usually based on one of the published drawings, but may be based on any method that satisfies the tests defined in paragraph 4.2. It can contain a mix of systems to cover different circumstances or different parts of your business. It is unlikely that we will make proposals for agreements based on drawdown scheme 1 or direct calculation scheme 1, unless an adjustment of stocks is included. The list is not exhaustive and any special circumstances or transactions not included in it must nevertheless be included in your agreement. The guidelines for HSP adaptations and business models are set out in paragraphs 8.2 and 8.3.
You must contact us in good time with your proposals for custom drawings so that we can verify them in good time to agree that you can use a custom sales scheme from the first day you are not allowed to use one of the published standard schemes. Certain parts of this notice have the force of res judicata in accordance with provisions 66 to 75 of the Vat Regulations 1995 (hereinafter the Regulations) which allow the Commissioners to define a methodology for retail schemes in a notice which they publish. . . .