Margin VAT

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in AAT member discussion
Can anyone explain margin VAT to me please?
And how is it shown on the VAT return?
This is the 1st time I have heard of it and am not sure how it works on the vat return?

Many thanks

Sharon

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Margin VAT

    Margin VAT is when you account for VAT on the profit you make on a sale. For example, a motor dealer buys a car for £500 and sells it for £1000 he pays VAT on the £500 profit (i.e. £500 x 7/47). This is then his output VAT. Similarly if a loss is made it is classed as "input vat".

    Hope that helps.

    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Margin VAT

    Thanks for your help Steve, that has clarified it for me.


    Many thanks again,

    Sharon
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Margin VAT

    As far as I am aware you have register with C&E to be able to take advantage of the margin scheme.

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