Claiming VAT back - Marginal VAT scheme
Claiming VAT back - Marginal VAT scheme
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StottyEvo

Original Poster:

6,860 posts

194 months

Saturday 20th February 2016
quotequote all
I've just bought an iPhone for company use, I bought it off a VAT registered seller hoping to submit the VAT receipt. It turns out they're using a marginal VAT scheme, I take it I cannot submit this VAT receipt for any relief as it states "VAT £0.00"

Also is this any different if buying an iPhone from Apple? I'm buying a second phone and wondering if its just worth buying from Apple at full price if this enables me to claim VAT back, it would work out cheaper.

I'm trying to be mindful of tax this year after paying no attention in my first year of trading!

hashtag

1,116 posts

185 months

Saturday 20th February 2016
quotequote all
I operate under the marginal scheme, selling mobile phones (2nd hand) amongst other things.

You are correct you cannot claim the VAT back.

Also as you suggest it may be cheaper to buy new and gat the VAT back

StottyEvo

Original Poster:

6,860 posts

194 months

Saturday 20th February 2016
quotequote all
Thank you very much for that. It looks like I'm signing up at Costco as they sell the phone I am looking for at £609.99 or £508.33 excluding VAT. The marginal VAT scheme phone cost £525!!

hashtag

1,116 posts

185 months

Saturday 20th February 2016
quotequote all
The margins scheme means I have to pay the VAT on the margin I achieve.

So in this case I buy a iPhone 6s for £325.00 and sell for £525.00

this gives margin of £200, and a VAT liability of £33.33.