Tax for Second Hand Goods - VAT Margin Scheme

Highlighted
Tourist
12 0 4

I sell some products that are eligible for the VAT Margin Scheme (you can read about that here - https://www.gov.uk/vat-margin-schemes)

 

With these, tax is not calculated on the selling price, but on the profit of the product.

 

So for example, If I bought something at £100 and sold at £220, profit would be £120 and tax would be £20

 

I have ‘Cost’ field on all my products so I can enter the original purchase price in Shopify.

 

Is there any way, or any app for Shopify that can add tax to the product based off a percentage of the cost field for that product?

 

Has anyone got any ideas of best way to implement? VAT Margin Scheme is used by many businesses including car dealers, antique dealers, art gallery owners, etc so I am sure it would be a very useful add on.

0 Likes
Highlighted
Highlighted
Tourist
12 0 4

Thanks, but I already saw that and it doesn't help or solve the problem.

0 Likes
New Member
1 0 0

Hi,

 

did you manage to get a solution to your margin scheme issue? - I've been looking for a solution too.  my EPOS system which is separate to Shopify does exactly what we need but doesn't integrate with Shopify so I manually have to make a spreadsheet for margin items every vat quarter.  

0 Likes
Highlighted
New Member
3 0 0
@kickgame have you found a way round this ?
Please don’t forget to keep a stock book and copies of sales and purchase invoices and also include the sales minus the vat in the box 6 and total purchase on box 7 of the vat return hope that helps.

May be try to add a percentage of 16.67% on profit
0 Likes