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Posted Thu, 29 Aug 2024 09:52:00 GMT by stuart baker
My business buys secondhand records and clothes from Europe, USA and UK and sells them in the UK. The business also does the same with new goods. Am I able to use the vat margin scheme for any part of my secondhand business?
Posted Fri, 30 Aug 2024 13:26:12 GMT by Jay Cooke
Read this guidance here : https://www.gov.uk/guidance/check-if-you-can-use-a-vat-margin-scheme-if-you-import-from-or-export-to-countries-outside-the-uk "You cannot use a margin scheme when you i) buy goods from Great Britain and sell in Northern Ireland, unless they are works of art, collectors’ items or antiques or are second hand vehicles or ii) import goods other than works of art, collectors’ items or antiques into the UK or iii) sell goods which have been imported into EU member states, and which you have got somebody to collect on your behalf If you import works of art, antiques and collectors’ item" The fundamental issue is that for margin scheme to apply, the goods you buy cannot have had VAT charged when you buy them, so buying off a UK based trader/member of the public, you will have proof no VAT was charged because there will be no VAT shown on the sellers sales invoice. But when importing goods from EU or USA, whilst the seller may not charge VAT, as soon as the goods enter the UK, they will be subject to import VAT by Customs, the freight agent/courier will probably pay this and recharge it back to you but the point is VAT has been charged on these purchases and so fail the conditions for margin scheme. Certain collector items are exempt from these rules and margin scheme can still apply, a list of definitions are found in the link below but not that clothing and records meet the definitions : https://www.gov.uk/vat-margin-schemes/eligibility
Posted Mon, 02 Sep 2024 14:34:35 GMT by HMRC Admin 17 Response

Hi 
Stuart baker ,

The second hand margin scheme is generally for second hand goods bought in the UK and resold.
Certain imports of goods can be sold under the second hand margin scheme.
See : 

Check if you can use a VAT margin scheme if you import from, or export to, countries outside the UK

VAT margin schemes  .

Thank you .



 

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