VAT Margin Scheme Explained

The VAT margin scheme allows businesses to pay VAT on the profit margin of certain goods, rather than the full selling price.

What Qualifies for the Margin Scheme?

• Second-hand goods
• Works of art
• Antiques and collectibles
• Classic cars

How it Works

Instead of charging VAT on the full selling price, you only pay VAT on the difference between your purchase price and selling price.

Record Keeping Requirements

When using the margin scheme, you must:

• Keep detailed purchase and sale records
• Issue special invoices
• Maintain a margin scheme account