France Says Unused Goods May Qualify for VAT Margin Scheme

• A French tax ruling dated 19 August 2026 says unused goods can still count as second-hand goods for the VAT margin scheme.
• This applies if the goods were bought from a non-taxable person or an entity that could not deduct VAT on the original purchase.
• The key factor is the seller’s tax status and lack of prior VAT deduction, not whether the item was actually used.
• Resellers can therefore apply VAT only to their profit margin, even for unused or unopened items.

Source: cyplom.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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