VAT Margin Scheme
There needs to be an option to satisfy the VAT Margin Scheme in the UK. The scheme allows businesses to calculate VAT on the profit only of second hand goods. The only fix at the moment is to extract the incorrect data from RS and manually amend the details. It means that you can't get real time profits in RS. Would make life so much easier if this option existed.
alan matkin commented
Any more thoughts on VAT margin scheme as a update to RS ?
Alan Matkin commented
We are looking to sell pre owned watches all on the margin scheme with RS as our control system the margin scheme is vital to handle the VAT element ! is it progressing
very useful hope this is implemented soon
we sell a lot of good at marginal VAT so this would be a real benefit
Any news...? We're dealing with more and more Margin Scheme sales and is a massive part of our business now.
Any update on this?
Thank you for the additional information on this. We are looking in to options and we will update this thread when have plans more solidified.
Here is a spread sheet designed by an accountancy firm to use for VAT Margin scheme, it will give you the info you need to design a workable solution for UK users.
If I bought a phone off a wholesaler/company for €300
and then I stupidly sold it for €350
Then I would be liable to pay 23% vat in Ireland which would be €80.5
So that's why it's important to
differentiate Between normal vat and marginal vat.
Hope this helps
The concept is simple
You purchase a second hand phone off a customer who lets say walks into your shop from the street.
You input the cost price let's say for example its €300
You then sell the phone that day to another customer who walked into your shop.
You sell the phone for €350
The profit is €50
You then pay your vat on the profit.
So if it's in let's say Ireland you pay 23% vat on the profit which is €11.50
So you need your system to be able to identify the cost, the selling price which will intern give you your profit
your system can determine the vat margin on the profit to whatever vat certain countries charge.
The team has been doing some research into what it would entail to add VAT Margin scheme functionality, and we would love to hear more information from users who need it.
At first glance it seems like the main thing would be:
1) Adding the ability to mark items as second hand
2) Figure out net (diff between cost and retail)
3) Use that net as the tax basis
It also seems that there are some regulations about what needs to be displayed on the a VAT Margin Invoice that is different from a regular VAT Invoice?
We'd welcome some examples that you've seen in which this has been done well, to help us figure out how it could be implemented within RepairShopr.
Hey just agreeing that there needs to be a vat margin option on the software or else the software is invalid in the UK & Ireland
This is very much needed here in the UK!
See for details... https://www.gov.uk/vat-margin-schemes/overview
Suggested on the Nov 23, 2016 and still no sign. This would be very helpful RS please consider.