If you trade in second-hand goods, works of art, antiques and collectors' items, you may be eligible to use the Margin Scheme.

If you use the Margin Scheme there are special rules for completing boxes 1, 6, and 7 on the VAT return.

When you buy goods which you intend to include in the Margin Scheme, you must obtain a purchase invoice.

You might buy a used car from a dealer who sells it to you under the Margin Scheme for second-hand vehicles.

You can't sell the car under the Margin Scheme for second-hand vehicles.

See Notice 718 Margin Schemes for second-hand goods, works of art and collectors' items.

Further details are in Notice 718 Margin Schemes for second-hand goods, antiques, works of art and collectors' items.

You can resell such vehicles using the Margin Scheme.

If you are using the Tour Operators' Margin Scheme, the conversion process is slightly different.

This also applies if you sell accessories with a used vehicle that you don't sell under the Margin Scheme.