We do not have official support for the VAT Margin scheme, however, it is possible to use this scheme while on a standard VAT scheme in Clear Books. The example below should help explain how you can process transactions to appear correctly on the VAT return.
I buy a used item with no VAT for £600 and sell it for £660.
The VAT should be calculated as:
The difference between sale and purchase: £660 - £600 = £60
VAT on the difference: 16.67% * 60 = £10
In Clear Books
Enter the £600 cost as a bill using 0% VAT, to get it into box 7.
Head to Purchases > Bills
Click on the Create new Bill button
Enter bill with 0% VAT and Gross as £600
Enter the sales invoice by entering the gross £660 and a manual £10 VAT.
Head to Sales > Invoices
Click on the Create a new invoice button
Enter invoice with Gross 660 and a manual VAT rate of 10
Sales Invoice
When you sell something you plan to claim for under a VAT margin scheme, you must give the buyer an invoice that includes:
any of the following: ‘margin scheme - second hand goods’, ‘margin scheme - works of art’ or ‘margin scheme - collectors’ items and antiques’
In Clear Books - you could put this text in the Summary.
You can download a VAT Margin invoice scheme (Author: Business Test Ltd) from the invoice Templates list on the Settings > Configure system > Invoice themes > Templates menu. This theme hides the VAT amounts on the invoice PDF.
