Which of the following is a benefit of the VAT annual accounting scheme?

The benefit of the VAT annual accounting scheme primarily lies in the reduction of the frequency of payment and reporting. Under this scheme, businesses can streamline their VAT obligations by making a single annual payment, as opposed to quarterly or monthly payments. This lessens the administrative burden, allowing businesses to focus more on their core operations rather than on constant VAT compliance tasks.

Additionally, since reporting is consolidated to an annual basis, businesses experience less paperwork throughout the year, which can lead to efficiencies in accounting processes. This annual framework is particularly advantageous for smaller businesses, helping them manage their cash flow more effectively.

The other options, while they might suggest potential aspects of VAT systems, do not accurately reflect features of the annual accounting scheme. For example, businesses are not automatically enrolled in the scheme; they must apply and meet specific criteria to be eligible. Furthermore, it doesn't inherently allow for higher VAT claims than other schemes, nor does it eliminate the need for VAT registration, which remains a fundamental requirement for businesses that are VAT registered.