In which scheme are businesses automatically entered upon registering for VAT?

When a business registers for VAT, it is automatically entered into the standard scheme. This scheme is the default option that applies to all VAT-registered businesses unless they choose to opt for an alternative scheme, such as the flat rate scheme, cash accounting scheme, or annual accounting scheme.

The standard scheme involves charging VAT on sales and claiming back VAT on purchases, which requires businesses to maintain detailed records of their VAT transactions. This traditional method ensures compliance with VAT regulations and provides a straightforward approach for managing VAT obligations.

Other schemes, like the flat rate scheme, cash accounting scheme, and annual accounting scheme, are voluntary and offer different ways of calculating and paying VAT, aimed at simplifying the process for certain types of businesses or for those with specific turnover thresholds. However, opting for these alternatives is not automatic upon registration, thus making the standard scheme the default for newly registered businesses.