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HMRC internal manual

VAT Retail schemes guidance

From
HM Revenue & Customs
Updated
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Daily gross takings (DGT): About DGT

Regulation 67 of the Value Added Tax Regulations 1995 provides the Commissioners with the legal vires for insisting that there can be no valuation of supplies without use of the DGT. Officers must establish (and document) how a retailer arrives at their DGT. The checklist at section 4 ofNotice 727/2 Bespoke retail schemes refers to the various aspects of the DGT and the related adjustments that may require consideration.

Some of those points are expanded on below.

Remember: Retail schemes are only concerned with valuing retail supplies taxable at other than the zero rate. Supplies which are outside the scope of, or exempt from, VAT, such as BT Phonecards (sold at or below face value), postage stamps, lottery tickets, exempt charges for credit, etc must be excluded from the DGT for retail scheme purposes. Similarly, the retailer must account for any non-retail supplies, including supplies to other VAT-registered businesses outside the retail scheme.

The agreement should state where the business’s DGT figure comes from. For example, till roll, EPOS (Electronic Point of Sale) system reports, and copy invoices/sales dockets.