Overview
VAT margin schemes tax the difference between what you paid for an item and what you sold it for, rather than the full selling price. You pay VAT at 16.67% (one-sixth) on the difference.
You can choose to use a margin scheme when you sell:
- second-hand goods
- works of art
- antiques
- collectors’ items
You cannot use a margin scheme for:
- any item you bought for which you were charged VAT
- precious metals
- investment gold
- precious stones
Source gov.uk
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