What is VAT fraud?: examples of different types of VAT fraud: manipulation of liabilities and accounting schemes: accounting schemes
There are various schemes in operation designed to assist taxable persons to declare the right tax at the right time. These include:
- Annual Accounting Scheme (VATAAS);
- Agricultural Flat Rate Scheme (VATFRS);
- Cash Accounting Scheme (VCAS);
- Flat Rate Scheme (FRS);
- Margin schemes for second-hand goods, works of art, antiques and collector’s items (VATMARGS);
- Payments of Accounts Scheme (VPOA);
- Retail schemes; and
- Tour Operators Margin Scheme.
(Guidance on retail schemes and the Tour Operators Margin Scheme can be found in V1-23).
Whilst the majority of taxable persons use the schemes correctly there are some who will attempt to use them to fraudulently evade VAT or manipulate them to gain a cash flow advantage.
If you discover a taxable person who you suspect to be manipulating an accounting scheme you should contact the VAT Fraud Team.