VAT Margin Scheme (Global Accounting) Purchase Recordkeeping

[Apple55]

I can see that the page on HMRC site with title "The Margin and Global Accounting Scheme (VAT Notice 718)" has this text on it "This guidance was withdrawn on 23 December 2021"

This notice said that when using VAT Margin Scheme (Global Accounting) you must collect Name & Address from every private seller of 2nd hand low value goods which you buy goods from for resale under the scheme.

Now looking at the new link (new since 2021 December) the HMRC site points to which is called simply "Using the global accounting VAT margin scheme", with regards to records keeping when buying it only mentions this:

Purchase and sales summaries
You must include the:

• invoice number, if shown on the invoice
• date of purchase or sale
• description of goods
• total price

Collecting seller name and address for goods purchased on Vinted, eBay, Facebook Marketplace, Depop etc, is not always possible. But with this change from 2021 December it is no longer required?

Therefore private seller name and address is no longer required. Am I reading this right?

 

[Scalloway]

The Institute of Chartered Accountants say this.

"On 23 December 2021, HMRC issued 12 documents that it described as new notices relating to margin schemes. ICAEW’s Tax Faculty observes that these new guidance notes are primarily replacements for the old VAT notices 718, 718/1 and 718/2 which were withdrawn on the same date."

VAT second-hand margin schemes: new HMRC guidance

HMRC replaces three VAT notices with new guidance on second-hand margin schemes.

www.icaew.com

 

[Apple55]

The Institute of Chartered Accountants say this.

"On 23 December 2021, HMRC issued 12 documents that it described as new notices relating to margin schemes. ICAEW’s Tax Faculty observes that these new guidance notes are primarily replacements for the old VAT notices 718, 718/1 and 718/2 which were withdrawn on the same date."

Good information, however I was wondering more on the specifics around how "Purchase Inovice" requirements specifically for Margin Scheme VAT (Global Accounting) have changed after Notice 718 was withdrawn.

Specifically the part where it previously stated that when buying from private individual you have to make up your own invoice and include sellers name and address.
However now it seems that it does not mention this?

 

[Scalloway]

The requirement for the seller's details are still on this page which is undated.

VAT margin schemes

How to use VAT margin schemes - records you need to keep, invoicing and VAT return reporting

www.gov.uk

 

[Apple55]

The requirement for the seller's details are still on this page which is undated.

Yes. Very good point.

But how would you interpret the text on the main page under of "VAT margin schemes" the heading of "Exceptions: There are different rules if you’re selling:" * - high volume, low price items - you can use the Global Accounting Scheme, a simplified version of the VAT margin scheme".

There is a link to another page which also talks about purchase and sales invoices requirements and seller name and address is not mentioned there.

Therefore "Margin Scheme" and "Margin Global Accounting Scheme" are two separate sets of rules in terms of records keeping? Or not?

 

[Scalloway]

Therefore "Margin Scheme" and "Margin Global Accounting Scheme" are two separate sets of rules in terms of records keeping?

Yes