Can I show VAT on a margin scheme invoice?

No. On a margin scheme invoice the VAT is included in the price and must not be shown separately. That stops the buyer reclaiming VAT that was only charged on your margin.

Free tool · UK

Margin scheme invoice template

Q: What must a margin scheme invoice show?

The date, your name, address and VAT number, the buyer's name and address, the stock book number, the invoice number, a description of the item and the total price, with no VAT shown separately. It must also include the scheme wording: 'margin scheme - second hand goods', 'margin scheme - works of art' or 'margin scheme - collectors' items and antiques'.

Q: Which margin scheme wording should I use?

Use 'margin scheme - second hand goods' for most used items, 'margin scheme - works of art' for works of art, and 'margin scheme - collectors' items and antiques' for antiques and collectors' items.

Fill in the boxes and your invoice builds itself on the right, with everything HMRC asks for. Then print it or save it as a PDF. Nothing you type is sent anywhere: it all stays in your browser.

Your business Business name Business address VAT numberStarts with GB, then 9 digits.

We’ll remember these on this device, so your next invoice is quicker.

Your customer Their name Their address

The sale

Invoice number Date of sale

What you sold

Stock book number Price (£)

Delivery you charged (£, optional)Delivery is part of the selling price under the margin scheme. What kind of item is it?

Your business name

Your address

VAT number

Invoice

Bill to

Customer name

Customer address

Invoice number
Date

Description	Stock no.	Amount
Total

Margin scheme - second hand goods

VAT is included in the price under the margin scheme and is not shown separately.

Everything HMRC asks for

The date
Your name, address and VAT number
Your customer’s name and address
An invoice number
The stock book number
A description of the item
The total price
No VAT shown separately
The margin scheme wording

Questions

Margin scheme invoices, simply

What must a margin scheme invoice show?

The date, your name, address and VAT number, your customer’s name and address, the stock book number, the invoice number, a description of the item and the total price. It must not show VAT separately, and it must include the scheme wording. This template does all of that for you.

Why can’t I show the VAT?

Under the margin scheme you only pay VAT on your profit, so the VAT inside the price isn’t a figure your customer can reclaim. Showing it separately would suggest they can, which is why HMRC says not to.

Which wording should I use?

“Margin scheme - second hand goods” for most used items, “margin scheme - works of art” for works of art, and “margin scheme - collectors’ items and antiques” for antiques and collectables. Choose the kind of item in the form and the template uses the right one.

What’s the stock book number?

The number of the item in your stock book, the record HMRC asks margin scheme sellers to keep of everything they buy and sell. It links the invoice to what you paid for the item. Our free stock book template numbers items for you.

How much VAT do I owe on this sale?

VAT on your margin: the selling price minus what you paid, divided by 6. Our margin scheme calculator shows the working.

Selling on Shopify? MarginVAT sends these for you.

Every sale gets its margin scheme invoice automatically, numbered, with the stock book filled in and the VAT worked out. Your customers download it from their order page.