VAT Margin Scheme and postage costs
Jpeterson85
Registered Posts: 12
in VAT
We are using the VAT margin scheme for the second hand products we buy and sell.
We pay VAT on the difference between the buy price and sell price at 16.67%.
We are trying to get a better understand on how the postage fees should be accounted for.
If we purchase an item for £10 + £2 postage and packaging, can we log the VAT margin scheme buy price as £12 or £10? – in this scenario the postage would be made via RoyalMail which means postage is non-vatable.
If we purchase an item for £10 + £2 postage and packaging and it is shipped by courier whose fees are applicable for VAT is the scenario different to the above?
If there are 2 items in one purchase, £10 each + £2 postage and packaging for both combined.
We only sell one of the two items and would like to apply VAT Margin Scheme to this item.
Should this be logged as £10 as the buy price for calculating VAT Margin Scheme or can this be logged as £12 or a portion of the postage for example 2 items purchase for postage £2, therefore £1 can be applied for this and the buy price of the item would be total £11 for calculating VAT Margin Scheme.
If we purchase a second hand goods item on ebay which is applicable for VAT Margin Scheme, and the seller sends the item by courier (not royal mail), can we claim back the VAT? We have not received a VAT invoice from this customer but the amount is a small amount.
If we purchase an item for £10 and sell an item for £50 and the postage cost we charge to our customer is £20 (posted via courier), what should we record the selling price as for VAT Margin Scheme purposes?
In this example, we have received £70 from the customer (£50 + £20). Can this be recorded as £10 buy price, £70 selling price, therefore we should pay 16.67% on £60?
Or should we calculate this as £10 buy price, £50 selling price, we should pay 16.67% of £40 and pay VAT at 20% for the £20 postage and packaging?
Thanks for your help and I look forward to the advice anyone can offer on this.
We pay VAT on the difference between the buy price and sell price at 16.67%.
We are trying to get a better understand on how the postage fees should be accounted for.
If we purchase an item for £10 + £2 postage and packaging, can we log the VAT margin scheme buy price as £12 or £10? – in this scenario the postage would be made via RoyalMail which means postage is non-vatable.
If we purchase an item for £10 + £2 postage and packaging and it is shipped by courier whose fees are applicable for VAT is the scenario different to the above?
If there are 2 items in one purchase, £10 each + £2 postage and packaging for both combined.
We only sell one of the two items and would like to apply VAT Margin Scheme to this item.
Should this be logged as £10 as the buy price for calculating VAT Margin Scheme or can this be logged as £12 or a portion of the postage for example 2 items purchase for postage £2, therefore £1 can be applied for this and the buy price of the item would be total £11 for calculating VAT Margin Scheme.
If we purchase a second hand goods item on ebay which is applicable for VAT Margin Scheme, and the seller sends the item by courier (not royal mail), can we claim back the VAT? We have not received a VAT invoice from this customer but the amount is a small amount.
If we purchase an item for £10 and sell an item for £50 and the postage cost we charge to our customer is £20 (posted via courier), what should we record the selling price as for VAT Margin Scheme purposes?
In this example, we have received £70 from the customer (£50 + £20). Can this be recorded as £10 buy price, £70 selling price, therefore we should pay 16.67% on £60?
Or should we calculate this as £10 buy price, £50 selling price, we should pay 16.67% of £40 and pay VAT at 20% for the £20 postage and packaging?
Thanks for your help and I look forward to the advice anyone can offer on this.
0
Comments
-
Hello, is anyone able to help with this please?0
-
Hi,
I have no experience with the VAT Margin Scheme, but have you had a look here:
https://www.gov.uk/guidance/the-margin-and-global-accounting-scheme-vat-notice-7180
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