- Resellers who sell used goods, works of art, collectors’ items or antiques must apply the margin scheme if the goods were supplied to them by a non-VAT entrepreneur, were supplied exempt from VAT, or were supplied by another reseller under the margin scheme.
- The profit margin is defined as the difference between the fee and the cost of acquiring the goods. If a reseller acquires a good through an intra-Community supply and later sells it with the margin scheme, the VAT paid on the acquisition is included in the taxable amount of the sale.
Source Taxence
See also
- Summary of ECJ C-180/22 (Mensing) – VAT paid on intra-EU acquisition is to be included in taxable amount under profit margin scheme
- C-180/22 (Mensing) – Judgment – VAT paid on intra-EU acquisition is to be included in taxable amount under profit margin scheme
- C-264/17 (Mensing) – Judgment – Margin scheme on works of art; right to deduct input VAT by taxable dealer
