VATMARG01100 - Introduction: Background

Supplies of second-hand goods can be treated in the same way as supplies of new goods. However, to avoid double taxation on goods which have already borne tax, there are special schemes for some categories of goods which allow VAT to be charged on the 바카라 사이트œvalue added바카라 사이트 amount. This is achieved by calculating VAT on the amount by which the selling price exceeds the purchase price - the margin - instead of charging VAT on the full selling price.

There are a number of schemes for second-hand goods:

  • the margin scheme for second-hand goods, works of art, antiques and collectors바카라 사이트™ items;
  • the global accounting scheme (a simplified method of operating the margin scheme); and
  • the auctioneers바카라 사이트™ scheme.

These schemes, known collectively as margin schemes, were introduced on 1 January 1995 (1st June 1995 for the auctioneers바카라 사이트™ scheme).

Use of the margin schemes

Use of the schemes is optional; but businesses who use them must keep certain records and comply with other conditions, as laid down in The VAT Margin Scheme and global accounting.

Normally, goods obtained bearing VAT on their full value are not eligible for the margin schemes.