Margin\Global Accounting Scheme (VAT Notice 718)
Hi All,
We are VAT registered company but we also trade under VAT Global Accounting\Margin Scheme (VAT Notice 718).
We basically buy lots of stock (used\new software\some accessories) virtually 90%+ without VAT element and when we resell under conditions of the above schemes we pay VAT on the difference between SALE PRICE and PURCHASE PRICE, and not on a full price.
I wonder if anyone else is trading using these schemes and has issues with Amazon’s VAT Calculations, VAT Invoices for Customers who demand for VAT and Amazon’s take on VAT?
Just wanted to hear your opinion
alex
0 replies
Seller_JVrK6emk6S3ur
Hey there,
Just wondering if you found a solution ?
Thanks
Seller_aOogeQQcgrYam
Yes we sell second hand photography gear on here using the margin scheme, and are also signed up to the Vat calculation service.
We list the used equipment using the NOTAX VAT code, so that the customer sees it as zero VAT and none is shown on the invoice Amazon provides. We then make a note in our second hand log spreadsheet (that contains all serial numbers, purchase costs etc) that it was sold via Amazon, and our accountant adjusts the figures in Xero (imported using A2X) to include the VAT on the profit rather than zero.
Hope that makes sense?
