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Where Taxpayers and Advisers Meet

Claiming VAT on parts

simmys1977
Posts: 1
Joined: Tue Sep 15, 2020 8:04 pm

Claiming VAT on parts

Postby simmys1977 » Tue Sep 15, 2020 8:12 pm

Hi All.

I'm selling 2nd hand goods & use the margin scheme (vat registered). I will be soon repairing damaged items I have purchased for re-sale & was wondering that the parts I buy to fix the item, do include vat, so can I claim the vat back?

Trevor S
Posts: 61
Joined: Tue Jan 01, 2019 12:37 am

Re: Claiming VAT on parts

Postby Trevor S » Tue Sep 15, 2020 10:41 pm

See the following HMRC guidance at:
https://www.gov.uk/vat-margin-schemes/eligibility

"Margin schemes and standard VAT
You cannot include any of the following in your calculations when using a margin scheme:
  • business overheads
  • repairs
  • parts or accessories
Instead, reclaim these on your VAT return in the normal way."

So yes, you can claim the VAT back on your VAT return (box 4), provided of course that you've got the VAT invoices / receipts.


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