Reselling goods purchased at public auction

[rcass]

I am about to register for VAT.

My stock is purchased at public auction. Some auction houses operate the Auctioneers Margin Scheme, whereby VAT is not added to the hammer price of secondhand goods and, significantly in my case, goods sent to auction by insurance companies (apparrently new or secondhand goods).

I would like to operate the margin scheme to sell my goods.

Can I apply the margin scheme to any goods that I sell that were originally purchased subject to the Auctioneers Margin Scheme, irrespective of these goods being new (ex insurance company) or secondhand?

If I have to charge VAT in the 'standard' way when reselling the 'new' goods which are not subject to VAT on the hammer price, I am at a serious disadvantage when competing against bidders who are not registered for VAT.

[paultaylor@vatease.c]

In brief, you may well be entitled to use the second hand margin scheme depending upon the type of goods and the way in which they are purchased. However, the application of the scheme is complex. I would recommend you spend a short while with a VAT expert to discuss all of the requirements of the scheme.

I would be happy talk this through with you.

Regards

Paul Taylor
http://www.vatease.co.uk/
0121 778 4299