margin scheme question

margin scheme question

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MrJuice

Original Poster:

3,324 posts

156 months

Tuesday 21st April 2015
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If my vat registered business buys a second hand car and wants to sell it on the margin scheme, I have to ensure all my paperwork complies with hmrc rules. If I buy my secomd hand car from a UK vat registered business, I have to make sure their invoice says 'input tax deduction has not and will not be reclaimed on goods sold on this invoice'. Or words to that effect.

If this does not happen, I leave myself having to pay vat to hmrc on the whole sale, not just my margin

Now, if I buy a used car from a German car dealer who is vat registered, and I bring it to the UK to sell, and he gives me an invoice with no vat breakdown, does that invoice qualify as an invoice that will allow me to sell on the margin scheme in the UK?


jebus

278 posts

175 months

Tuesday 28th April 2015
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Remember reading something on this, this should help you, everything should be as normal pretty much more details at section 7