Margin scheme

[JennyC3]

I buy and sell rare stamps, and use the VAT Margin Scheme, but am not certain that I am using it correctly.
Most of my purchases are from auction houses in the USA and most sales are to private individuals in the USA.
A large proportion of the lots I buy at auction comprise collections of many individual stamps. I break these collections down into individual stamps (or occasionally groups of related stamps), which I then offer for sale through a certain well-known on-line auction site. A buyer might buy several stamps from me at the same time, and the auction site will combine those purchases onto a single Sales Record.

I usually make a single shipping charge per Sales Record, regardless of how many stamps are involved, how bulky the package is, or what means I use to send it (e.g. Royal Mail tracked/signed for, DHL, UPS, Fedex, ...). Inevitably, the predicted shipping charge does not correspond exactly to the actual cost of P&P. Sometimes I make a margin on it, sometimes a loss.
I am now also selling to customers in the EU. For the margin scheme I must generate a Stock Book for all such sales.
1) Should I include this shipping charge within the price received for the stamps, and apportioned across all stamps ?
2) Most payments are received by PayPal - can I allow for that cost (again apportioned across all stamps on the Sales Record according to their sale price) ?

Occasionally I might buy stock from UK auctioneers. Even more occasionally, a lot bought in the UK might have VAT on it.
3) Can I reclaim the VAT on the purchase of this lot (I know I can claim the VAT element of any commission charge) ?
4) If I then sell this lot to a purchaser in the EU, should I add VAT to its sale price ? This is actually infeasible, as the buyer wins the auction for the price bid, regardless of where he/she lives. And if I had to lose the VAT within my selling price it would make me uncompetitive for potential buyers outside the EU.
5) Do I have to generate a Sales Invoice for an EU buyer of an item on which I had to pay VAT at time of purchase ?
6) If this incoming VAT-charged lot comprises several individual stamps, which I then sell separately, but combined with other stamps which had no VAT when purchased, how on earth do I account for VAT ?

I rather hope I'm making this more complicated than it need be. But I fear it might well be worse. Any responses welcome.

[les35]

That is a lot of questions for a free forum. There are issues to address: margin scheme; evidence of export, place of supply (and whether VAT applies at all in some cases), etc. And, there may be alternative ways of structuring your activities to mitigate the VAT cost. I suggest you seek a VAT review to cover an agreed list of items.

[JennyC3]

Thanks, I do appreciate it's a lot of questions, but was hoping to at least get some of the simpler ones out of the way (such as treatment of shipping charge and PayPal charge). What do you mean by "VAT Review" - is this something HMRC will help with, or does it mean getting a qualified VAT accountant/adviser involved ?

[les35]

HMRC will simply direct you to their website.
My advice is to speak with your Accountant in the first instance, and appoint a VAT specialist to advise.