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HMRC internal manual

VAT Fraud

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.