VAT extracted from the difference between selling and purchase cost.
Margin (sold − bought): 200
VAT amount on margin: 33.33
UK VAT Margin Scheme helps you vat extracted from the difference between selling and purchase cost. It is commonly used by finance teams, founders, individual planners for uk vat margin scheme, second hand margin scheme, vat on margin.
Formulas
- **Margin** = sold price − bought price
- **VAT on margin** = margin − (margin ÷ (1 + VAT rate ÷ 100))
This matches treating the margin as a VAT-inclusive amount and backing out the VAT at your standard rate.
Not HMRC guidance
Eligibility, record-keeping, and reporting rules for the margin scheme are set by HMRC. Use a qualified adviser for compliance.
Disclaimer: This calculator provides information only and is not financial, tax, or legal advice.