Margin scheme ― auctioneers

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides an overview of a margin scheme that can be used by auctioneers. The auctioneers' scheme is a variation of the main VAT margin scheme used for secondhand goods (see the Margin schemes - overview guidance note for more detail). The margin scheme for auctioneers allows auctioneers to account for VAT based on the hammer price, rather than the sale price. The margin is calculated as follows:

•
adding to the hammer price the cost of the auctioneer's services charged to the buyer
•
deducting from the hammer price the cost of the auctioneer's services charged to the seller

VATA 1994, s 50A; VAT (Special Provisions) Order 1995, SI 1995/1268 (as amended); Value Added Tax (Cars) Order 1992, SI 1992/3122; VATA 1994, s 47(2A); De Voil Indirect Tax Service V3.533; VATMARG04000; VAT Notice 718/2

This method of calculating the margin is generally appealing to auctioneers when compared with the usual VAT margin scheme, as it takes into account how auctioneers usually operate.

This note should be read in conjunction with

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Corporate interest restriction ― administrative aspects

Corporate interest restriction ― administrative aspectsThe corporate interest restriction (CIR) regime has some specific administrative rules in addition to the general administrative requirements for corporation tax returns. This guidance note does not include commentary on provisions that are

14 Jul 2020 11:19 | Produced by Tolley Read more

Personal Tax

Self assessment ― amendments and corrections

Self assessment ― amendments and correctionsOnce a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the

14 Jul 2020 13:37 | Produced by Tolley Read more

Value Added Tax

Supplies of goods and services connected with education

Supplies of goods and services connected with educationThis guidance note provides an overview of the VAT treatment of goods and services provided in connection with supplies of education. This should be read in conjunction with the following guidance notes:•Supplies of education•Local authority

14 Jul 2020 13:44 | Produced by Tolley Read more

��˾��ҹ��