Which goods fall under the VAT margin scheme?

In the UK, article 12(2) of the Value Added Tax (Special Provisions) Order 1995 opens the margin scheme to works of art, antiques, collectors’ items and second-hand goods, and article 2 defines second-hand goods as tangible movable property that is suitable for further use as it is or after repair. Motor vehicles are named separately in section 50A(2) of the VAT Act 1994. Belgium’s FPS Finance uses the same definition and also names second-hand means of transport; the Belgian scheme sits in article 58, § 4 of the Belgian VAT Code and in Royal Decree no. 53 of 23 December 1994.

Which goods are excluded?

In the UK, article 2 of the 1995 Order leaves precious metals and precious stones out of the definition of second-hand goods, and gov.uk lists what you cannot use a margin scheme for: any item you bought for which you were charged VAT, precious metals, investment gold and precious stones. Belgium’s FPS Finance names six: new goods, precious metals, precious stones and pearls, renovated goods, goods processed so heavily that at the point of sale you cannot establish they are the same piece, goods that are consumed on first use, and goods that cannot be used again in the same state.

Does the margin scheme depend on my trade?

No. The test is about the goods, not about the kind of business you run. An antiques dealer cannot automatically sell everything under the margin, and a trader who normally works with ordinary VAT can perfectly well hold margin goods. That is exactly why these pages are organised by type of goods.

How do I calculate the VAT on my margin?

The VAT is inside the margin, not on top of it. In the UK, at 20%, that is one-sixth of the margin: on a £400 margin you pay £66.67, not £80. Article 13 of the 1995 Order allows global accounting, where the margin is worked out per VAT period as total sales minus total purchases — but not for vehicles, boats, aircraft, caravans or horses, nor for individual items valued above £500. In Belgium, at 21%, a €400 margin gives €69.42 and not €84, taken across the whole return period; in France the legal default is piece by piece.

Margin VAT by type of goods

The margin scheme is about the goods, not about your trade.

An antiques dealer cannot automatically sell everything under the margin scheme, and neither can a second-hand shop. In the UK the test comes from article 2 of the Value Added Tax (Special Provisions) Order 1995 and works goods by goods: is this tangible movable property that is suitable for further use as it is or after repair, and is it not a precious metal or precious stone? Belgium’s FPS Finance asks the same question, with its own exclusion list.

Those two questions give a clear yes for one type and a “yes, unless” for another. Each type is below, with the rule that the answer comes from.

Article 2 of the Value Added Tax (Special Provisions) Order 1995 defines second-hand goods as “tangible movable property that is suitable for further use as it is or after repair, other than motor cars, works of art, collectors’ items or antiques and other than precious metals and precious stones”. Article 12(2) opens the margin scheme to “works of art, antiques and collectors’ items” and “second-hand goods”.

Falls under the scheme

Ordinary second-hand pieces. As long as you buy them from someone who charges you no VAT, you sell them under the margin.

ArtNamed in the scheme; watch out for purchases at a reduced rate. AntiquesNamed in the scheme; the limit runs through renovation. FurnitureThe textbook example; watch out with reupholstery. BooksOrdinary second-hand goods; the book's own rate applies to the margin too. BicyclesOrdinary second-hand goods; watch out for built-up bikes. CarsExplicitly named; watch the new-vehicle rule. ClothingOrdinary second-hand goods; watch out with bales by the kilo. Records and vinylSecond-hand goods or collectors' item; under the margin either way. ToysOrdinary second-hand goods; watch out with incomplete sets. ElectronicsUnder the margin; refurbishing touches the renovated-goods exclusion. WatchesUnder the margin; watch gold cases and full services. Musical instrumentsUnder the margin; watch out with full restorations. Tableware and glassUnder the margin; silver needs a second look. StampsA collectors' item; named separately in the scheme. MotorcyclesA means of transport, explicitly named; watch cross-border sales. Caravans and campersA means of transport, explicitly named; watch full conversions. HandbagsOrdinary second-hand goods; watch full restorations. BoatsA means of transport, explicitly named; watch cross-border sales. Rugs and carpetsUnder the margin; watch out with thorough reweaving. LightingUnder the margin; rewiring counts as repair. ToolsUnder the margin; watch purchases with VAT from a business. CeramicsUnder the margin; damage can put a piece out of use. CamerasUnder the margin; film and digital follow the same rule. SmartphonesUnder the margin; watch fleet purchases with VAT and heavy refurbishing. Sports equipmentUnder the margin; safety is a separate question. LaptopsUnder the margin; the purchase invoice decides. Collectors' itemsOwn category in the scheme; same treatment.

Falls under it, with a limit

Here an exclusion sits right next to your piece. One step further and the scheme no longer applies.

JewelleryThe piece yes, the loose precious metal and stones no. WineNot excluded in the UK; yes in France from a private seller; excluded in Belgium. SilverwareThe object yes, the metal by weight no. CoinsCollectors' coin yes, precious metal by weight no. Building materialsReusable yes, demolition waste no.

Does not fall under it

These fall outside the definition of second-hand goods — in the UK, that of article 2 of the 1995 Order — or are named on Belgium’s exclusion list.

GoldPrecious metals are excluded, in the UK as in Belgium. End-of-line stockBought from a business with VAT; excluded.

The same piece, four countries

The UK runs its own margin schemes under UK law; Belgium, the Netherlands and France follow the same EU directive. Even so, the countries do not read the rules the same way everywhere — for a never-used piece bought from a private individual, for wine and for the rate on books the answer differs. What you pay always differs.

Belgium 21% out of the margin

Margin across the whole return period. Article 58, § 4 VAT Code and RD no. 53.

Netherlands 21% out of the margin

Per period by default (global accounting) for, among others, furniture, clothing, books, means of transport, art and antiques (Uitvoeringsbesluit OB 1968, art. 4c(1)). Other goods item by item (Wet OB 1968, art. 28b).

France 20% out of the margin

Legally piece by piece, but globalisation per period is allowed, with no prior election. CGI art. 297 A; BOFiP § 260.

United Kingdom One-sixth of the margin

HMRC’s own scheme, outside the EU. Below the registration threshold you pay nothing.

Each rate measured on 2 September 2026 at the government itself: FPS Finance, VAT rates (Belgium); Belastingdienst, Tarieven en vrijstellingen (Netherlands); impots.gouv.fr, Plusieurs taux de TVA (France, CGI art. 278); gov.uk, VAT margin schemes (UK, “You pay VAT at 16.67% (one-sixth) on the difference”).

Written on 8 September 2026, revised on 9 October 2026. The UK rule was read in the law text on 9 October 2026 on legislation.gov.uk: section 50A of the VAT Act 1994 and articles 2, 12 and 13 of the Value Added Tax (Special Provisions) Order 1995 (SI 1995/1268). The plain-language points come from gov.uk, VAT margin schemes, read the same day; VAT Notice 718 itself was withdrawn on 23 December 2021 and replaced by that guidance. Further UK points were checked on 7 October 2026 in HMRC’s VAT Margin Schemes manual. The Belgian scheme, the definition of second-hand goods and the exclusions were measured on 8 September 2026 at Belgium’s FPS Finance, Regeling van belastingheffing over de marge, which names article 58, § 4 of the Belgian VAT Code and Royal Decree no. 53 of 23 December 1994 as its basis. For works of art, collectors’ items and antiques only, the Belgian law of 19 December 2025, explained in circular 2026/C/14 of 13 January 2026, excludes pieces bought at a reduced rate from the margin scheme. It transposes article 316 of the EU VAT Directive as amended by Directive (EU) 2022/542; that EU text was checked on eur-lex.europa.eu on 7 October 2026. For ordinary second-hand goods the rule changes nothing. The Dutch and French points were checked on 7 October 2026 at the Belastingdienst and on bofip.impots.gouv.fr. The UK rules for each type of goods were read on 13 October 2026: on legislation.gov.uk, sections 21 and 50A of the VAT Act 1994, articles 2, 12 and 13 of SI 1995/1268 and article 8 of the Value Added Tax (Cars) Order 1992 (SI 1992/3122); on gov.uk, the margin-scheme guidance on second-hand vehicles, global accounting and houseboats and caravans, HMRC’s VAT Margin Schemes manual (VATMARG02100, 03100, 03300, 08100, 13650, 13750) and VAT Notice 701/21.

This is an explanation, not tax advice. Whether the margin scheme is the right choice in your case, and how to enter it in your return, is a question for your accountant.

Frequently asked questions

Which goods fall under the VAT margin scheme?
In the UK, article 12(2) of the Value Added Tax (Special Provisions) Order 1995 opens the margin scheme to works of art, antiques, collectors’ items and second-hand goods, and article 2 defines second-hand goods as tangible movable property that is suitable for further use as it is or after repair. Motor vehicles are named separately in section 50A(2) of the VAT Act 1994. Belgium’s FPS Finance uses the same definition and also names second-hand means of transport; the Belgian scheme sits in article 58, § 4 of the Belgian VAT Code and in Royal Decree no. 53 of 23 December 1994.
Which goods are excluded?
In the UK, article 2 of the 1995 Order leaves precious metals and precious stones out of the definition of second-hand goods, and gov.uk lists what you cannot use a margin scheme for: any item you bought for which you were charged VAT, precious metals, investment gold and precious stones. Belgium’s FPS Finance names six: new goods, precious metals, precious stones and pearls, renovated goods, goods processed so heavily that at the point of sale you cannot establish they are the same piece, goods that are consumed on first use, and goods that cannot be used again in the same state.
Does the margin scheme depend on my trade?
No. The test is about the goods, not about the kind of business you run. An antiques dealer cannot automatically sell everything under the margin, and a trader who normally works with ordinary VAT can perfectly well hold margin goods. That is exactly why these pages are organised by type of goods.
How do I calculate the VAT on my margin?
The VAT is inside the margin, not on top of it. In the UK, at 20%, that is one-sixth of the margin: on a £400 margin you pay £66.67, not £80. Article 13 of the 1995 Order allows global accounting, where the margin is worked out per VAT period as total sales minus total purchases — but not for vehicles, boats, aircraft, caravans or horses, nor for individual items valued above £500. In Belgium, at 21%, a €400 margin gives €69.42 and not €84, taken across the whole return period; in France the legal default is piece by piece.