Journey
VAT compliance for retailers
Complete VAT guidance for retail businesses. Covers pricing rules, retail schemes for calculating VAT, invoicing requirements, and submitting returns. Designed for VAT-registered retailers who want to understand their specific obligations.
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Show VAT-inclusive prices and charge the right rate
Prices shown to consumers must include VAT, and many shops sell goods at more than one rate.
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Choose and use a VAT retail scheme
A retail scheme works out your VAT from your takings instead of from each sale.
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Issue VAT invoices when customers ask
You need not issue a VAT invoice for retail sales unless the customer asks for one.
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Complete and submit VAT returns
Your retail scheme figure feeds your output VAT; supplier invoices give your input VAT.
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Handle vouchers, refunds and loyalty schemes
Each of these changes when, or how much, VAT you account for.
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Use the margin scheme for second-hand goods
If you sell second-hand goods, antiques, works of art or collectors' items, you can pay VAT on your margin instead of the full price.
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Keep your retail VAT records
Every retail scheme needs daily gross takings records, and you must keep VAT records for at least 6 years.
Official guidance
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