VATRESNI3700 | How the scheme works: Accounting for VAT

Accounting procedures for VAT under the VAT Retail Export Scheme are outlined in Notice 704 Retail Exports Scheme (Northern Ireland). Only positive-rated goods may be sold under the scheme. The supply of goods to a person using VATRESNI is standard rated until the retailer has the certified VAT refund document (proof of export) and has made the refund. The supply can then be zero-rated.

Where a retailer is using a retail scheme, they adjust output tax payable as outlined in Notice 727 VAT Retail Schemes. It is important to note that it is only the VAT that is adjusted; the administration and cash booth fees must not be deducted from the VAT.