Editorial team
AccountingWEB.co.uk
Share this content
0
2
1534

Vat Margin scheme

We are in the process of preparing a vat return for a new client who has a mix of second hand and new sales. Previously the vat returns were prepared by them and the vat due on the sale of second hand items has been correctly calculated using the margin scheme. The problem I have is they have then deducted the input tax on the used purchases and reclaimed this as well. This surely cannot be correct - can anyone help?
David Salter-McLean

Replies

Please login or register to join the discussion.

avatar
By Anonymous
24th Jan 2007 13:00

Vat margin
Hi David

suggest vat notice 718 para2.9
"There will never be any input tax to reclaim on goods you have bought for resale under the scheme"

Hope this helps

Thanks (0)
avatar
By Davidsm
24th Jan 2007 16:13

Vat Margin Scheme
Many thanks it does

Thanks (0)