This guidance note provides details on the margin scheme for supplies of second-hand horses and ponies. This note should be read in conjunction with the Margin schemes - overviews and Operating the margin scheme guidance notes.
Businesses can sell horses and ponies that have been previously owned under the margin scheme and this was confirmed in the Förvaltnings AB Stenholmen v Riksskatteverket CJEU Case C-320/02. Horses and ponies that have been bred and are being sold for the first time cannot be sold under the margin scheme. Also if VAT is shown as a separate amount on the purchase invoice, the business cannot use the margin scheme if it sells the animal.
It is recommended that businesses selling horses / ponies under the margin scheme follow the special procedures explained below.
Records when using the margin scheme ― the three part British Equestrian Trade Association (BETA) form
Businesses can choose to use a three part form to account for VAT on the sale of the horse / pony under the scheme as an
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