We’re all familiar with Value Added Tax (VAT), but there are some exceptions to the standard 20% rate of VAT. Among the exceptions is the VAT Margin Scheme, a method of calculating VAT for businesses selling used goods such as used mobile phones.
The VAT Margin Scheme differs from standard rate of VAT in two ways: the rate is 16.67% and only charged on the margin you make selling the product.
We created the below VAT calculator to help you understand the VAT options available on used mobile phones.
Always consult your accountant or HMRC for detailed guidance.