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 (VATAFRS)
- Cash Accounting Scheme (VCAS)
- Flat Rate Scheme (FRS)
- Margin schemes for second-hand goods, works of art, antiques and collector’s items (VATMARG)
- 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.