Calculate VAT under the margin scheme for second-hand goods, art and antiques: 1/6 of the margin instead of 20% on the full sale price.
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Under the VAT margin scheme, dealers in second-hand goods, works of art, antiques and collectors' items pay VAT at 1/6 (the 20% VAT fraction) of the margin — sale price minus purchase price — instead of on the full selling price, with no input VAT reclaim on the purchase. Includes the Global Accounting variant for bulk low-value items.
Buy a second-hand item for £1,000, sell it for £1,500: margin £500, VAT due £83.33 (1/6) — versus £250 under normal rules on the full price, a £166.67 saving.
Enter the sale price and what you paid for the item.
Switch to Global Accounting for period totals of bulk low-value goods (under £500 per item).
Compare the margin-scheme VAT with normal-rules VAT and read the saving.
Last data update
July 5, 2026
Sources and references
GOV.UK — VAT margin schemes (gov.uk/vat-margin-schemes); record keeping (gov.uk/vat-margin-schemes/keeping-records).
The data in this calculator is updated regularly to reflect the latest official rates. When in doubt, consult the official sources listed above.
VAT-registered dealers selling second-hand goods, works of art, antiques or collectors' items bought without VAT (from private individuals or other margin-scheme dealers).
1/6 of the margin (sale price minus purchase price). If you sell at or below cost, no VAT is due on that item.
A bulk variant for items costing £500 or less: VAT is 1/6 of the difference between total eligible sales and purchases in the period, and negative margins carry forward.