Build Point of Sale Retail Scheme daily gross takings from the sales record
Build daily gross takings (DGT) from retail sales by VAT rate, then record permitted adjustments and retain the evidence. In a hypothetical day where £720 of card sales settle as £702, standard-rate DGT starts from the £720. The bank deposit is a reconciliation check, not the takings figure.
Which figures go into DGT
Identify the VAT rate at the point of sale and record DGT separately for each rate. Record cash and card payments when the customer pays. Include the full VAT-inclusive value of credit and other non-cash retail sales when you make the supply, and record any adjustments separately. Cash on hand and net bank settlement do not set the retail sales value.
This assumes an eligible retailer already using Point of Sale. HMRC allows specific alternatives or adjustments for some eligible businesses. Finance providers, vouchers, bad debts, exports and special debtors adjustments are outside this example.
Sources and context, checked :
Hypothetical standard-rate day
Reduced-rate DGT for the same day is £210 and zero-rate DGT is £300, VAT-inclusive where applicable. The £18 processor fee explains the gap between £720 and the £702 deposit. It does not reduce takings.
| Standard-rated item | Amount |
|---|---|
| Card receipts, gross (£702 settled after £18 fee) | £720 |
| Cash sales | £120 |
| In-house credit sale delivered that day | £240 |
| Documented refund | −£60 |
| Standard-rate DGT | £1,020 |
Sources and context, checked :
Applying the fractions
On the return, multiply the standard-rated period total by 1/6 and the reduced-rated period total by 1/21. This day contributes £1,020 ÷ 6 = £170 plus £210 ÷ 21 = £10, so £180 of scheme output tax. The £300 of zero-rated sales adds nothing but stays in the rate totals.
When the customer later pays the £240, it is not counted again, because the sale entered DGT at supply.
Sources and context, checked :
Records under Making Tax Digital
A business under Making Tax Digital (MTD) for VAT must record DGT digitally, but functional compatible software does not need separate entries for each retail supply making up DGT. The underlying VAT records must still be kept, even if not digitally.
At period end, pull the rate totals from the daily records, tick each credit sale against the account log so it appears once, and handle any non-scheme sales under their own rules.
- Till report by VAT rate
- Gross processor report with a fee-to-deposit bridge
- Sales-on-account log
- Refund and void evidence
Sources and context, checked :