Margin scheme VAT calculator

The margin scheme is a way of charging VAT when you sell second-hand goods in the EU and the UK. You pay VAT only on the difference between the sale price and the purchase price, not on the whole price, because VAT was already paid when the item was first sold new.

When you are VAT registered and sell second-hand goods you bought without VAT, for example from private sellers or from another dealer who sold under the margin scheme. New goods, and goods you bought with deductible VAT, use normal VAT.

Take the sale price minus the purchase price, then multiply the margin by the rate divided by 100 plus the rate. At 20%, an item bought for €60 and sold for €100 has a €40 margin and €6.67 VAT.

Then there is no VAT on that item, because the margin is zero or negative. The calculator works per item, as Qasell does.

The standard rate in your country for most goods, such as 19% in Germany, 20% in France and the UK, 21% in the Netherlands or 25% in Sweden. The calculator lets you set any rate.