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Under the reverse charge scheme there is no VAT charged on the phones when I buy them from my supplier, does this means it is eligible to sell these under the margin scheme as it is required that I must purchase items that have no VAT on them and that are second hand?
Thanks I have one final question.
If this is the case, please advise what amount of VAT I would pay if I purchase a second hand phone for £115.00 and sell it for £149.90.
I also have to pay £6.00+ VAT postage (which is included in the selling price)
As well as £6.50 + VAT fees.
I have read through the HMRC links provided, I am still unclear as to weather or not second hand goods sold to me under a reverse charge scheme (my suppliers invoices says Reverse Charge Scheme) can be sold under the margin scheme by me?
Are you able to shed some light on this...effectively can I use margin scheme in conjunction with the reverse charge scheme hand phones.