Free tools
VAT margin scheme calculator
For VAT-registered resellers of second-hand goods: see the VAT on your margin, and how much the scheme saves you.
- Countries
- UK · France
- VAT due on
- The margin
- Rules checked
- 3 Nov 2026
- Price
- Free, no sign-up
VAT to pay
£10.00
The scheme saves you £10.00 compared with VAT on the full price.
- Margin (VAT included)
- £60.00
- VAT on the margin (1/6)
- £10.00
- VAT on the full price, for comparison
- £20.00
- Profit after VAT and costs
- £50.00
Item-by-item method, 20% rate, not tax advice. Global accounting works differently. Official rules: HMRC VAT Notice 718.
Retailed records what you paid for every item, so your margin is always ready.
Start freeHow is VAT worked out under the margin scheme?
On the margin only: the selling price minus what you paid for the item. At the 20% rate the VAT is one sixth of that margin. An item bought for £60 and sold for £120 has a £60 margin and £10 of VAT.
Which items can I sell under the margin scheme?
Second-hand goods, works of art, antiques and collectors’ items that you bought without VAT, for example from a private seller on Vinted or eBay. If your purchase invoice shows VAT, the item cannot go through the scheme.
What if I sell an item at a loss?
No VAT is due on that item. Under the item-by-item method you cannot set the loss against the margin on other items.
Do unworn sneakers count as second-hand goods?
In France, yes. A BOFiP ruling of 19 August 2026 (BOI-RES-TVA-000270) says it does not matter whether an item was actually used, and its first example is unworn shoes kept in their box. So sneakers bought from a private seller can go through the margin scheme.
Every margin, item by item
Retailed tracks your buy price, sale price and fees for every item you sell.