Calculate VAT on
Second-Hand Goods
Instantly.

Any VAT-registered business that buys eligible second-hand goods, works of art, antiques, or collectibles. The goods must be bought from individuals, other margin scheme users, or situations where VAT was not reclaimed on the purchase.

No. The margin scheme is only for eligible second-hand goods, antiques, works of art, and collectors' items. New goods must be accounted for under standard VAT rules.

No separate registration is needed. If you are already VAT-registered, you can choose to use the margin scheme for eligible transactions. You simply account for it on your VAT return.

VAT is calculated as 1/6th of the profit margin (selling price minus purchase price). This is equivalent to 16.67% of the margin. If the margin is zero or negative, no VAT is due.

If you sell at a loss (selling price is less than purchase price), the margin is negative and no VAT is due on that transaction. You cannot offset this loss against other positive margins.

Yes. Under the margin scheme, the selling price is the total amount the buyer pays. VAT is already embedded in the selling price, so you do not add VAT on top.

You must maintain a stock book recording: the purchase price and date, the selling price and date, a description of the item, and details of the buyer and seller. HMRC can inspect these records.

No. Under the margin scheme, you must not show VAT as a separate item on your invoices. The price shown is the total price including the embedded VAT.

Include the VAT due from margin scheme sales in Box 1 of your VAT return. The full selling price (not just the margin) goes in Box 6. HMRC's guidance has full details.