If I purchase second hand jewellery from a private individual not vat registered and I sell the item myself through my vat registered jewellers can I use the vat margin scheme ? Or would I have to pay over the full 20% vat ? Or is there a scheme for second hand jewellery that you only pay the vat on the difference between what you pay to what you sell it for ?
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What you do with the jewelry you buy appears may impact treatment- are you doing repairs/using say gold acquired elsewhere for repairs or are you just turning the items?
https://www.accountingweb.co.uk/any-answers/vat-on-second-hand-gold-jewe...
What type of entity is "my vat registered jewellers"?
And how long has it been trading as VAT registered?
And, as DJKL hints, what is the nature of the trade?
Oh, and to whom (in what countries) are you selling?
Ok it’s straight forward jewellery maker operating a vat registered business , I have been asked in this difficult financial time by customers if I will purchase there old jewellery , at the moment I don’t sell any second hand jewellery but it got me thinking maybe this could be another add on to my retail shop of new jewellery that I design and make … but obviously I won’t have purchase vat to reclaim and do I pay the full amount of vat on the total sale it makes s big difference on making the business decision if I loose the full 20% there would be very small margin in that case and not worth doing . But I know with some antiques etc you can operate a different vat scheme . So just asking to see if anyone has any experience with this
That doesn't answer anyone's previous questions regarding your "straight forward jewellery maker operating a vat registered business":
- is this entirely separate from your other (property related) businesses?
- is it a limited company or a sole trader business?
- does it carry out any business other than making/selling jewellery?
- how long has it been VAT registered?
- is it currently using any VAT scheme (e.g. flat rate or ...)?
- do you sell to any non-UK customers?
These are not intended to be intrusive questions, but they (and possibly others) when answered will affect the options that you are seeking to understand.
If you are VAT registered then I presume you have an accountant with whom you could have a fruitful discussion; if not, then now would seem to be a good time to appoint one.
BTW, I've no experience of dealing in precious metals but was under the impression you needed a licence to do that (along with AML registration etc)?