The Auctioneers' Scheme
1.1 Information in this notice
This notice is about the Auctioneers' Scheme, which is a variation on the VAT Margin Scheme for second-hand goods, antiques, works of art and collectors' items. It tells you when you may use the Auctioneers' Scheme to account for VAT on the supplies you make.
• which goods you can include under the scheme;
• how the scheme works;
• how you must calculate the margin;
• what records you must keep.
This notice assumes that you have a working knowledge of basic VAT principles, as outlined in Notice 700 “The VAT Guide”.
If, after reading this notice, you need any further help or advice, contact our VAT Helpline.
1.2 Changes in this notice
The information in this notice used to be contained in Notice 718: Margin Schemes for second-hand goods, works of art, antiques and collectors' items. We have moved the information which is relevant to auctioneers who opt to use the Auctioneers' Scheme into this separate, shorter notice.
The rules about declarations on Auctioneers' Scheme invoices have changed: please see section 4 for details.
We have updated the Notice to reflect the VAT rate of 20%.
1.3 Who should read this notice
You should read this notice if you are an auctioneer and you want to know about the Auctioneers' Scheme.
1.4 Force of law
In UK law, VATA 1994 s 50A allows the Treasury to make Orders to introduce second-hand schemes.
The VAT (Cars) Order 1992 covers cars.
The VAT (Special Provisions) Order 1995 (as amended) covers all goods