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HMRC internal manual

VAT Retail schemes guidance

Eligibility and refusal to allow use of a retail scheme: The power to refuse use of a retail scheme: Effecting refusal of use

Any decision to exercise the power under Regulation 68 is an operational one to be taken by the local office as the assurance officer will be best placed to know the retailer and his business. Cases of difficulty should be discussed with the appropriate SO. In cases of doubt, or where you feel that there is a need to do so, you should refer the case with full details and a reasoned recommendation to VATAPPS Accounting Policy as explained in the Indirect Tax Homepage.

If you decide to exercise the power, your refusal letter must state the date that the refusal takes effect, the reason(s) for the refusal, the relevant legislation under which the power to refuse use is exercised, and the factors which were taken into account or which were disregarded in reaching the decision. Copies of any refusal letters should be sent to VATAPPS Accounting Policy with, wherever possible, an estimate of the amount of revenue protected through refusing use of a particular scheme or, indeed, any scheme at all.