Frequently asked questions

The VAT Margin Scheme is an HMRC scheme for dealers who buy and sell second-hand goods. You pay VAT on your profit margin rather than the full selling price — saving significant tax compared to standard VAT accounting. Read the full guide →

The scheme is available to VAT-registered UK businesses that buy and sell second-hand goods, works of art, antiques, and collectors' items. You can only apply it to items purchased without VAT — typically from private individuals or other margin scheme businesses.

Individual accounting calculates VAT on the margin of each item separately. Global accounting pools all purchases and sales in a period and calculates VAT on the total margin. Global accounting is simpler but not available for all stock types. Compare the two methods →

No. Under the VAT Margin Scheme you cannot reclaim input VAT on costs related to the goods you're selling — including repairs, cleaning, or reconditioning. These costs can be deducted from your profit, but the VAT on them cannot be reclaimed separately. Full explanation →

HMRC requires a stock book with a record for every item bought and sold: purchase date, supplier details, purchase price, sale date, sale price, margin, and VAT due. Records must be kept for at least six years. AutoVAT maintains this stock book automatically. See the full record-keeping guide →

Xero and QuickBooks don't have built-in support for the VAT Margin Scheme. They have no concept of a stock book, per-item margin tracking, or margin VAT calculations. AutoVAT was built specifically for this gap — automating everything Xero leaves as a manual spreadsheet. Xero vs AutoVAT comparison →

AutoVAT connects to eBay, Amazon, Shopify, WooCommerce, and more. If you use a different platform, our team will configure a custom integration for you.

Yes. AutoVAT generates export files compatible with both Xero and QuickBooks so you can keep using your existing accountancy software for everything outside the margin scheme.

All data is encrypted at rest and in transit. We use Cloudflare for DDoS protection and SSL, and your data is stored in UK-based servers.

Email us your enquiry and one of our specialists will contact you within 6 working hours. We'll understand your exact channels, software stack, and reporting needs, then build and configure a solution tailored to your business.

Most clients are fully up and running within a few days of our initial call, depending on the complexity of their setup and the integrations required.