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Operating the margin scheme

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Operating the margin scheme

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
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This guidance note provides an overview of how the margin scheme operates. Note that there are special rules in places when a margin scheme is used in respect of:

  1. β€’

    second-hand vehicles ― see the Margin scheme ― second-hand motor vehicles guidance note

  2. β€’

    horses and ponies ― see the Margin scheme ― horses and ponies guidance note

  3. β€’

    houseboats and caravans ― see the Margin Scheme ― houseboats and caravans guidance note

  4. β€’

    items that have been pawned ― see the Margin scheme ― agents and pawnbrokers guidance note

  5. β€’

    high volume, low price items ― in this instance the Global Accounting Scheme may be used, which is a simplified version of the VAT margin scheme - see the Global accounting margin scheme guidance note

VATA 1994, s 50A; De Voil Indirect Tax Service V3.531, V3.535; SI 1992/3222, Article 2; SI 1995/1268, Article 12; FA 1995, s 24; VATMARG02000

There are also different rules:

  1. β€’

    for auctioneers ― see the Margin scheme ― auctioneers guidance note

  2. β€’

    for agents see the Margin scheme

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