The VAT Second Hand Margin scheme carries with it specials rules when calculate the right numbers you need to include when filling out your VAT return. You’ll have to make sure you adhere to these, as well as the rules of the standard scheme when it comes to your other sales and purchases.
When you come to fill out your VAT return you’ll need to gather together the items you have sold from your Stock Book for the quarter you are reporting on. Then you’ll need to total up the following figures ready for the VAT return boxes as follows:
Box 1 Include the output tax due on all eligible goods sold in the period covered by the return
Box 6 Include the full selling price of all eligible goods sold in the period, less any VAT due on the margin
Box 7 Include the full purchase price of eligible goods bought in the period.
You should note:
- There is no need to include any figures in boxes 7 & 8;
- Do not include any items you made a loss on;
- You cannot set a loss on one item off against an item you made a profit on.
If you have made sales and purchases is the normal way, then you will need to add these figures to your Margin Scheme VAT Figures and include the total amounts in your VAT return.