The VAT Margin Scheme lets certain businesses, such as second-hand goods dealers, art dealers, and auctioneers, account for VAT only on the profit margin between the purchase and sale price rather than on the full selling price.
Record-keeping requirements
Businesses using the scheme must keep detailed purchase and sale records for each eligible item, since normal VAT invoices cannot be issued and input VAT cannot usually be reclaimed on the original purchase.
Tax rules depend on individual circumstances and can change. This glossary is general information rather than personalised tax advice.