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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.

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daniel.bailey shared this idea  ·   ·  Flag idea as inappropriate…  ·  Admin →

14 comments

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  • Alan Matkin commented  ·   ·  Flag as inappropriate

    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

    Alan

  • Matt commented  ·   ·  Flag as inappropriate

    Any news...? We're dealing with more and more Margin Scheme sales and is a massive part of our business now.

  • info@ibroke.ie commented  ·   ·  Flag as inappropriate

    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

  • info@ibroke.ie commented  ·   ·  Flag as inappropriate

    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.

  • Adminbobby (Customer Support Director, or Executive, RepairShopr) commented  ·   ·  Flag as inappropriate

    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?
    https://www.gov.uk/vat-margin-schemes/keeping-records
    https://www.gov.uk/vat-record-keeping/vat-invoices

    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.

    Thank you!

  • info@ibroke.ie commented  ·   ·  Flag as inappropriate

    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

  • jonathan commented  ·   ·  Flag as inappropriate

    Suggested on the Nov 23, 2016 and still no sign. This would be very helpful RS please consider.

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