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VATF23420 | What is VAT fraud?: examples of different types of VAT fraud: manipulation of liabilities and accounting schemes: accounting schemes

From HM Revenue & Customs · VAT Fraud

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 (VATAFRS)

  • Cash Accounting Scheme (VCAS)

  • Flat Rate Scheme (FRS)

  • Margin schemes for second-hand goods, works of art, antiques and collector’s items (VATMARG)

  • Payments of Accounts Scheme (VPOA)

  • Retail schemes; and

  • Tour Operators Margin Scheme.

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.