Margin Scheme and Ebay

[splodge2001]

I buy second hand goods and sell them on Ebay.

Is the sales price for calculating margin VAT inclusive or exclusive of Ebay/Paypal fees?

Since 1st August 2017 Ebay have been charging VAT on their fees I'm not sure whether this makes a difference or not?

 

[Scalloway]

Your sales price for VAT purposes is the price before any deductions. If ebay are charging UK VAT then you can reclaim it.

 

[splodge2001]

So it's the price the customer pays?

 

[Scalloway]

Yes

 

[FD Capital]

The idea of the margin scheme is that rather than reporting all the inputs and outputs you just account for VAT on the profit you make. The scheme works well as very few if any end users will be VAT registered and new cars are treated differently for VAT.

 

[Mr D]

The idea of the margin scheme is that rather than reporting all the inputs and outputs you just account for VAT on the profit you make. The scheme works well as very few if any end users will be VAT registered and new cars are treated differently for VAT.

Not profit.

 

[lesvatadvice]

FD Capital is referring to Global Accounting. HMRC notice 718 explains this. And yes it will make life much easier than the conventional margin scheme.