Commentary

V3.532 Margin scheme—supplies of works of art, antiques, collectors' items and second-hand goods other than motor cars

Part V3 Supplies, acquisitions and imports

V3.532 Margin scheme—supplies of works of art, antiques, collectors' items and second-hand goods other than motor cars

V3.532 Margin scheme—supplies of works of art, antiques, collectors' items and second-hand goods other than motor cars

The use of this margin scheme is optional1 and therefore a person may choose to account for VAT under the normal rules on any individual supply.

Permitted circumstances

Eligible goods may be supplied under the margin scheme where the supplier takes possession of them pursuant to2

  1.  

    (1)     a supply in respect of which no VAT was chargeable;

  2.  

    (2)     a supply on which VAT was chargeable on the profit margin (including a supply falling under the corresponding provisions of another member state3);

  3.  

    (3)     a “de-supplied transaction4”, ie a transaction which is treated by virtue of any order made (or having effect as if made) under VATA 1994 s (5)3 (or the corresponding provisions of the Manx Act) as being a supply of neither goods nor services, except one falling under head 4 below5;

  4.  

    (4)     a transaction which is treated as a supply of neither goods nor services by virtue of SI 1995/1268 art 56, provided the supplier has a “relevant predecessor in title”, ie provided the last person to acquire the goods (other than by means of a transaction falling within this head) would have been entitled to use the margin scheme in respect of those goods7;

  5.  

    (5)     (if the goods are a work of art) a supply to the supplier from its creator or his successor in title; or

  6.  

    (6)     (if the goods are a work of art) an acquisition by the supplier from

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