Margin Scheme Brexit

Discussion in 'Accounts & Finance' started by splodge2001, Jan 9, 2021.

  1. splodge2001

    splodge2001 UKBF Contributor Free Member

    67 1
    I sell second hand goods to UK and EU. Now we have left the EU I understand the margin scheme no longer applies and that items sent to EU will be zero rated. However, I understand that in order to tackle VAT fraud the EU will be expecting online platforms such as Ebay to collect VAT relating to any sale in the EU. This will obviously not be margin VAT but VAT on the whole amount. This will make sales to the EU unviable as the items we purchase do not have reclaimable VAT. Is my assessment correct? Is there any recourse for margin sellers?
     
    Posted: Jan 9, 2021 By: splodge2001 Member since: Jan 8, 2013
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    26,397 3,232
    Increase EU pricing?
     
    Posted: Jan 9, 2021 By: Mr D Member since: Feb 12, 2017
    #2
  3. lesvatadvice

    lesvatadvice UKBF Regular Free Member

    807 126
    You are correct. From 1 Jan 2021 goods eligible for the margin scheme in the UK become ineligible when sold into the EU, and vice versa. This is true whether you sell directly or via a OMP.
     
    Posted: Jan 11, 2021 By: lesvatadvice Member since: Jul 7, 2011
    #3