VAT margin schemes are an optional method of accounting that allow businesses to calculate VAT on the value added to the goods they sell, rather than on the full selling price.
On 23 December 2021, HMRC issued 12 documents that it described as new notices relating to margin schemes. ICAEW’s Tax Faculty observes that these new guidance notes are primarily replacements for the old VAT notices 718, 718/1 and 718/2 which were withdrawn on the same date.
The new guidance contains some additional information regarding changes resulting from the Northern Ireland Protocol.
Links to the new guidance are as follows:
- Check if you can use a VAT margin scheme if you import from, or export to, countries outside the UK
- Using a VAT margin scheme if you buy and sell goods between Northern Ireland and the EU
- Selling horses and ponies if you use a VAT margin scheme
- Selling houseboats and caravans if you use a VAT margin scheme
- Using the global accounting VAT margin scheme
- Using the auctioneers' VAT margin scheme
- Selling unredeemed pawns if you use a VAT margin scheme
- Selling second-hand vehicles using a VAT margin scheme
- Buying second-hand vehicles using a VAT margin scheme
- Using the VAT margin scheme for second-hand vehicles
- Other products and circumstances affecting the second-hand vehicles VAT margin scheme
- Using a VAT margin scheme if you’re an agent
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.
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