Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Sun, 25 Jun 2023 15:58:45 GMT by
Hello, My business is soon going to hit the VAT threshold and I am going to begin filing my VAT soon. I sell luxury clothing and accesories online. I source all my products from individuals on forums and other various platforms. I never pay VAT on any stock I buy. Some of the goods are in brand new condition and some are in used condition. Whether the condition is pristine or not I am enquiring whether HMRC deem these products second hand as technically they are just that as they have not come from a store or a manufacturer?
Posted Tue, 27 Jun 2023 15:33:04 GMT by HMRC Admin 10 Response
Hi.
These clothes would be eligible for the second hand margin scheme as they are second hand and there is no VAT being charged on them to you.
The condition of the clothes is irrelevant as they must be in a condition where they can be used orto be used after repair. 
Please see guidance below:
VAT margin schemes
Thankyou.

You must be signed in to post in this forum.