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VAT margin scheme eligibility

Do trading cards qualify as collector's items under the VAT margin scheme?

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Dear All,

I have a client who is looking into buying and selling trading cards e.g. baseball cards, pokemon etc.

Due to margins being quite low, should they need to register for VAT, I wonder whether the margin scheme would be applicable to their business.

The guidance specifically mentions 'collector's items', but references 'stamps, coins and currency and other pieces of scientific, historical or archaeological interest'. The 'historical...interest' being the rather vague definition.

Does anyone have experience in this area? I would be grateful for any advice.

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By Les Howard
05th Aug 2022 15:40

Second hand goods are eligible for the margin scheme. They do not have to be collectors' items.
The value of the supply is the gross sale value, less the output tax. The value of the supply is NOT the margin. Please take care on this point.
If individual items are purchased at less than £500, the global accounting scheme will suit you better. This avoids the need to list every card individually. And any losses are offset within the calculation.

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Replying to leshoward:
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By mcook
08th Aug 2022 10:14

Many thanks for your advice, Les. It Certainly looks as though the global scheme could be the way to go. Much appreciated.

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By Paul Crowley
05th Aug 2022 17:20

Per Les above
Global scheme
Applies to all second hand stuff as far as I am aware
Do not look to selectively read HMRC simple explanations

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Replying to Paul Crowley:
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By mcook
08th Aug 2022 10:15

Thank you for your response, Paul.

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