VAT Margin Scheme
VAT registered businesses use the VAT margin scheme to tax the difference between what they sell and buy. Rather than the full input and output tax in standard VAT, the margin scheme will only charge on the net difference between sales and purchase of your products. You have to pay a 16.67% VAT tax on the difference in your sales and purchase. If you sell the following items, you are eligible to use the VAT margin scheme.
- Second-hand products
- Artwork
- Work of antiques
- Collector’s items
You are not eligible to use the VAT margin scheme if:
- You purchase items with VAT charges
- Expensive metal
- Gold investment
- Expensive stones