Oct 262010
VAT Margin schemes will save eligible traders money. This is because you only pay VAT on the margin, that is the different between the sale and purchase price.
If you sell something “at a loss” then there is no VAT to pay on that sale.
You can use a margin scheme on some goods and standard VAT accounting on others and you can still reclaim VAT on general business expenses as normal.
Second-hand car dealers and antique dealers commonly use a VAT margin scheme.
