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VAT Margin Scheme - Quick Guide
The VAT 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.
How the Calculation Works
1. Calculate the margin: Selling Price - Purchase Price
2. Calculate VAT: Margin ÷ 6 (equivalent to 16.67% of the margin)
3. Calculate profit: Margin - VAT - Other Costs
Important Notice
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.
Quick FAQs
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.
View all FAQs
