VAT margin scheme calculator
Enter what you paid and what you sold it for. You'll see your margin, the VAT due on it and what you keep, with every step of the working.
VAT due on this sale (20% rate)
£16.67
If you sell something for less than you paid, there's no margin, so there's no VAT on that item. Under the standard margin scheme, a loss on one item can't be set against the VAT on another. Global accounting is the exception: it works on totals for each VAT period.
This calculator is a guide. It doesn't replace advice from your accountant.
The margin scheme, simply
How do you calculate VAT under the margin scheme?
Take the selling price, subtract what you paid for the item, and divide that margin by 6 (at the UK's 20% rate). Bought for £400, sold for £500: the margin is £100, and the VAT is £100 ÷ 6 = £16.67.
Is delivery part of the selling price?
Yes. HMRC says the selling price is everything you receive for the goods, including incidental expenses directly linked to the sale. So delivery you charge the buyer goes into the margin.
What can I include in the purchase price?
What you paid to get the item, including anything the seller charged on top, such as an auction buyer's premium. You can't add repairs, parts or overheads; reclaim the VAT on those in the normal way.
What goes on a margin scheme invoice?
The date, your name, address and VAT number, the buyer's name and address, the stock book number, the invoice number, a description, and the total price with no VAT shown separately. It must also say "margin scheme - second hand goods" (or the wording for works of art, or collectors' items and antiques).
Selling on Shopify? Let MarginVAT do this for every sale.
The stock book, the VAT on each sale, the invoices and your VAT return figures, all automatic. We'll email you once, at launch.