ABSTRACT
Schemes C and E. When the retailer purchases his goods from the manufacturer or wholesaler, the distinction between the categories of goods can readily be made since the VAT will have been charged at the appropriate rate on the supplier's invoice. Schemes C and E are basically ones in which the retailer calculates his VAT liability in advance when he purchases the goods. In both cases, the prices at which the retailer will probably sell those goods is calculated (in the case of Scheme C, which is confined to small businesses, this is done on conventional mark-ups and in the case of Scheme E, which is available also for large businesses, it is done on more accurate estimations). The retailer's future VAT liability is calculated as these prospective sale values multiplied by the appropriate V AT fractions, less the VAT that he has been charged on the purchase of the goods.
