Can I use the margin scheme for this item?
Answer up to four quick questions about one item. You'll get a clear yes or no, HMRC's reason, and what you need to do next.
1. What are you selling?
2. Where did it come from?
3. Were you charged VAT when you bought it?
4. Is it a book, or clothes or shoes for a young child?
Your answer
Start with question 1
Pick what you're selling, and the answer appears here as soon as we know it.
These answers are for VAT-registered businesses in Great Britain. Northern Ireland has different rules for goods that move to or from the EU. If you're not sure about a particular item, HMRC asks you to contact them.
This checker is a guide based on HMRC's margin scheme guidance. It doesn't replace advice from your accountant.
Who can use the margin scheme
What goods can I sell under the margin scheme?
Second-hand goods, works of art, antiques and collectors' items. Second-hand goods are goods that can still be used, or could be used after repair. Antiques are over 100 years old. Collectors' items include stamps, coins and currency, and pieces of scientific, historical or archaeological interest. Not everything people collect counts.
What can't I use it for?
Anything you bought for which you were charged VAT, precious metals, investment gold and precious stones. Goods you import into the UK are out too, unless they're works of art, collectors' items or antiques. Vehicles, caravans, houseboats, horses and ponies, and pawned items have their own rules.
Do I have to register for the margin scheme?
No. You can start at any time by keeping the right records and reporting margin sales on your VAT return. If you don't meet all of the scheme's requirements, VAT is due on the full selling price instead of the margin.
Can I mix margin scheme and normal VAT sales?
Yes. Items that don't qualify are sold under the normal VAT rules, alongside the ones that do. Repairs, parts, accessories and overheads never go into the margin; reclaim the VAT on them in the normal way.
I'm not VAT-registered. Does this apply to me?
Not yet. If you're not registered for VAT, you don't charge VAT on your sales at all. The margin scheme matters once you register, which you must do if your taxable turnover goes over the VAT threshold.
Selling on Shopify? MarginVAT asks these questions for you.
When you add stock, MarginVAT checks each item, keeps the stock book, works out the VAT on every sale, issues the invoices and gives you your VAT return figures. We'll email you once, at launch.