Global Accounting Scheme
The Global Accounting Scheme is a simplified variation of the VAT Margin Scheme. With the standard VAT Margin Scheme you would account for VAT on the margin you achieve from the sale of eligible items. On the Global Accounting Scheme the VAT is calculated on the aggregate NET difference between your total eligible purchases and total eligible sales for a given accounting period.
Advantages of using the Global Accounting Scheme
You would generally benefit from using the Global Accounting Scheme if you buy and sell in bulk and would find it difficult to retain the appropriate records on a per item basis.
Which goods can I apply the Global Accounting scheme to?
You can include most of the items which would be eligible for sale under the Margin Scheme.
You must not sell any of the following items under the Global Accounting Scheme, regardless of their purchase price:
- boats and outboard motors
- caravans and motor homes
- horses and ponies
- motor vehicles
Please see here for more information on the Global Accounting Scheme. If you would like to register your business for VAT you can start an application here. --Latest--