VAT Margin Scheme - Purchase Price

Hi, can someone clarify what's included in the purchase price via the margin scheme for antique dealers please? I buy pieces from overseas and the auction houses usually provide an invoice that includes shipping. Should I exclude the shipping costs (as I am now) or include them? Thank you.

 

Hi. When using the margin scheme your purchase price would include which you have had to pay for the goods. It includes incidental expenses directly linked to the purchase which you were charged by the supplier, including commission,packaging,transport and insurance costs. Thank you.

Many thanks for the clarification.

Hi I have 2 questions kindly answer me. When using margin scheme, would MOT and repair include as incidental expense directly linked to the sales? And if there is loss on sale of second hand car can I reclaim VAT or what will be the treatment?

Hi Nazia Rafiq,
Please see the guidance here as regards MOT being expenses for the sale of the vehicle:
Using the VAT margin scheme for second-hand vehicles
It does depend what you are recoveing the VAT on.
If you are recovering the VAT on overheads which is allowed under the margin scheme then you would recover the VAT as input tax regardless of whether a profit is made on the sale.
Thank you.