Value Added Tax

Margin scheme ― auctioneers

Produced by Tolley
  • 16 Jun 2022 00:31

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Margin scheme ― auctioneers
  • Accounting for VAT
  • Conditions
  • Eligible goods
  • Tax points
  • Auctioneers’ scheme calculations
  • Completing the VAT return
  • International transactions
  • Sales from Northern Ireland to EU customers
  • Exports
  • More...

Margin scheme ― auctioneers

This guidance note provides an overview of the margin scheme that can be used by auctioneers. The auctioneers' scheme is a variation of the margin scheme. It allows auctioneers to account for VAT on a margin, the calculation of which involves:

  1. adding to the hammer price the cost of the auctioneer's services charged to the buyer

  2. deducting from the hammer price the cost of the auctioneer's services charged to the seller

VATA 1994, s 50A; VAT (Special Provisions) Order 1995, SI 1995/1268 (as amended); Value Added Tax (Cars) Order 1992, SI 1992/3122; VATA 1994, s 47(2A); De Voil Indirect Tax Service V3.533; VATMARG04000; VAT Notice 718/2

This note should be read in conjunction with the following guidance notes:

  1. Overview of margin schemes

  2. Operating the margin scheme

  3. Global Accounting margin scheme

  4. Margin scheme ― agents and pawnbrokers

Accounting for VAT

If an auctioneer:

  1. invoices in its own name

  2. sells goods that are eligible to be sold under the margin scheme (please note that businesses can only use the scheme to account

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