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Posted Mon, 09 Sep 2024 17:07:26 GMT by secondtrader2
I sell second hand goods under the Margin Scheme for Second Hand Goods and issue a receipt without a VAT figure and with the text stating "Margin Scheme for Second Hand Goods". One of my customers has queried and I want to point them to the documentation that states they cannot reclaim VAT. This is not explicit in https://www.gov.uk/vat-margin-schemes, can you point me elsewhere please that makes this clear.
Posted Fri, 13 Sep 2024 07:29:12 GMT by Jay Cooke
https://www.gov.uk/vat-margin-schemes/keeping-records (you'll need to read through to the section under "selling").
Posted Fri, 13 Sep 2024 09:12:06 GMT by HMRC Admin 21 Response
Hi secondtrader2,
Please see the guidance below:
VAT Margin Schemes
Thank you.
Posted Sat, 14 Sep 2024 06:22:21 GMT by secondtrader2
Thanks, so according to Article 4 if somebody buys an Office Chair from me that I have sold to them under the Margin Scheme for Second Hand Goods, then they can reclaim the VAT I have included in the price, as Office Chairs are not included in the items listed in paragraph (2). Please confirm I have understood this correctly. 2) The goods referred to in paragraph (1) above are— (a)works of art, antiques and collectors' pieces; (b)used motor cycles; (c)used caravans; (d)used boats and outboard motors; (e)used electronic organs; (f)used aircraft; (g)used firearms.
Posted Fri, 20 Sep 2024 08:00:21 GMT by HMRC Admin 13 Response
Hi.
The customer would not be able to recover the VAT charged in your price when selling the item under the margin scheme.
The margin scheme can be sold for any second hand goods with the exception of :
any item you bought for which you were charged VAT
precious metals
investment gold
precious stones.
So if a customer purchases a chair on the margin scheme then that customer can also sell the chair on the margin scheme to his customer but will not be allowed to recover the VAT within the price which you have charged.
Please see the guidance at:
VAT margin schemes: Overview
Thank you

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