The Margin Scheme is a method of calculating VAT based on the difference between the purchase price and selling price of eligible second-hand goods, rather than on the full selling price. This calculator provides an estimate of VAT due under the Margin Scheme.
This calculator is a guide only. All figures should be checked carefully before submitting to any tax authorities. It is your responsibility to ensure compliance with the applicable VAT rules and regulations.
Q: What items are eligible for the Margin Scheme?
A: Second-hand goods, antiques, and works of art, provided specific conditions are met.
Q: How is VAT calculated under the Margin Scheme?
A: VAT is calculated on the margin (selling price minus purchase price), at 16.67% (one-sixth) of the margin.
Q: Is VAT due if there’s no margin or a negative margin?
A: No, VAT is not due if the margin is zero or negative.
Q: Can I use this calculator for other VAT schemes?
A: No, this calculator is specifically designed for the Margin Scheme.