VAT Margin Schemes

The VAT Margin Scheme operates a reduced rate of 16.67% that applies to the NET difference between the purchase and sales of your goods. This differs from standard VAT reporting that applies to the difference between your input and output tax.

You can choose to use the margin scheme when you sell:

second-hand goods
works of art
antiques
collectors items

You will not be able to use the margin scheme for:

any item you bought for which you were charged VAT
precious metals
investment gold
precious stones

How can I register for a VAT Margin Scheme?

There is no formal registration process, you can start using a margin scheme at any time by retaining the correct records, and then reporting this on your VAT return.

If you would like to register your business for VAT you can start an application here.

Exceptions

There are specific rules if youre engaged in the sale of:

second hand vehicles
horses and ponies
houseboats and caravans
high volume, low price items - you can use the Global Accounting Scheme, a simplified version of the margin scheme

There are also special rules for pawnbrokers and auctioneers. --Latest--