The margin scheme and global accounting
This notice cancels and replaces Notice 718 (January 2010). Details of any changes to the previous version can be found in paragraph 1.2 of this notice.
1.1 What is this notice about?
This notice explains when you may use the margin scheme for second-hand goods, works of art, antiques and collectors' items, or the global accounting scheme, to account for VAT on your sales of goods.
— which goods you can sell under the schemes;
— how the schemes work;
— how you must calculate the margin; and
— 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, please contact our VAT Helpline.
Main narrative treatment—V3.531–V3.538.
1.2 What's changed
We have rewritten this notice to make it easier for you to find the information you need. General information in sections 2 to 13 applies to both schemes. In the later sections, we describe the global accounting scheme, the conditions for its use, and the impact the margin schemes have on particular business sectors.
We have removed—
— the information which is relevant to people who buy and sell motor vehicles; and
— the information about the Auctioneers' Scheme
— and have put it in two separate notices.
The rules about margin scheme declarations on invoices have changed: please see the paragraphs 5.3 (margin scheme) and 15.5 (global accounting) for details.