VRS13020 - Temporary 5% VAT rate on hot food and on-premises consumption: Catering supplies: Summary of retail scheme options

Pre 15/7/2020

Retail Scheme Operated	Why operated.	Retail Scheme options from 15/7/2020 to 12/1/2021.	Comments on options.
	Point of Sale	All sales at 20% rate. POS is compulsory.	Point of Sale	All sales at 5%. POS remains compulsory.
	Point of Sale	All sales at one or two VAT rates	Point of Sale\nor\nCatering Adaptation\nor\nA direct calculation method.	Provided system can identify and record sales at 0%, 5% and 20% at point of sale. If not, then can use either the Catering Adaptation or a direct calculation.\nCatering Adaptation is only available if relevant sales are less than £1million per annum.\nIt can be based on the Direct Calculation Scheme in Notice 727/5. It can only be used to determine the ESP of goods that are purchased and sold at same VAT rate and the remaining takings are at a single VAT rate. See example below.
	Catering Adaptation	Unable to operate Point of Sale. Catering turnover £1m pa.	Catering Adaptation	The Catering Adaptation has been amended to accommodate the VAT rate change.
	Agreed catering adaptation with HMRC.	Point of Sale can’t be operated, and catering turnover > £1m pa.	Agreed catering adaption with HMRC.	Business should make changes to their method, retaining records of the changes. You can refer to The Catering Adaptation in Notice 727 section 7 as an example.
	Bespoke Retail Scheme Agreement	Retail sales > £130m pa	Probably require amended clause	Submit written proposals to Customer Compliance Manager or (for WMBC) Kamran Hussain.