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Where Taxpayers and Advisers Meet

Margin Scheme for imports

leerobs
Posts:1
Joined:Thu Apr 19, 2018 10:01 am
Margin Scheme for imports

Postby leerobs » Thu Apr 19, 2018 10:11 am

Before i start, please excuse my ignorance, I'm not from a financial background.

Im looking to start trading in vintage toys from overseas. I have been trading for a few moths via eBay in Items that are around 30 years old and come in their original boxes. this has been just in the EU but there is a lot more scope in north America. Some of the cheaper and better quality items come from the USA where they are in more abundant supply, hence the lower price. The issue is that when I add the postage, import tax and VAT, the item is priced out of contention.

I have herd that as the items are essentially second hand, I could utilise the Margin scheme and pay 16.6% on the profit i make rather than the full value of the item. If this is the case, does it work for imported goods? If so what should i do when I'm sent the first VAT bill for an imported lot?

Kind Regards
Lee

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