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HMRC internal manual

VAT Margin Schemes

Global accounting: What if items are sold outside the scheme?


If a business wishes to sell items which have already been included in its global accounting purchase records outside the scheme - for example, by exporting the goods - its records must be adjusted to take account of this in accordance with the VAT (Special Provisions) Order 1995, Article 13(1)(SI 1995/1268).

How to adjust the records Total purchases should be adjusted in the period the goods were removed from the scheme.

In that period, the value of the purchases must be reduced by an amount equal to the purchase value of the excluded goods. There is no set way to apportion values to individual items, but the method used must produce a fair and reasonable result.

The trader must be able to demonstrate how he calculated the value of items excluded from the scheme.