I am new to this forum and I have a question, I would be very grateful if someone could help me please.
VAT return should be submitted using VAT margin but there are purchases which vat can be claimed on. So BOX 1 – VAT due on sales under the VAT margin scheme BOX 2 – BOX 3 – BOX 4 – VAT reclaimed on purchases BOX 5 – BOX 6 – Total value of sales under VAT margin BOX 7 – Total value of purchase under VAT margin + total cost of the other purchases BOX 8 – BOX 9 –
Plus now I have been told that the client is UK based and registered but he buys the goods from EC country but sales them in UK – I really am not sure if in this case I should be including anything in BOX 2 and then in BOX 9
If you trade in second-hand goods, works of art, antiques and collectors’ items, you may be eligible to use the Margin Scheme. The Margin Scheme allows you to calculate VAT on the difference (or margin) between your buying price and your selling price. If no profit is made (because the purchase price exceeds the selling price) then no VAT is payable. If you use the Margin Scheme there are special rules for completing boxes 1, 6, and 7 on the return is shown below (the rest of the boxes are completed in the normal way). If you also trade in goods and services outside the Margin Scheme you must account for those supplies on your return in the normal way (described in Section 3).
Box 1 VAT due on sales Include the output VAT due on all eligible goods sold in the period covered by the return.
Box 6 total value of sales Include the full selling price of all eligible goods sold in the period, less any VAT due on the margin.
Box 7 total value of purchases Include the full purchase price of eligible goods bought in the period.
There is no requirement to include Margin Scheme purchases or sales in boxes 8 and 9 of your return.