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Former Member
Jun 17, 2011 at 02:31 PM

VAT Margin Scheme

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Hi,

In the EU there is a a Tax system called the VAT Margin Scheme which is applied to the sale of 2nd-hand goods.

It works by taking the purchase price of an item, including transport, packaging, insurance etc. , and subtracking it from the sale price, leaving only the profit. Only the profit is then taxed according to that countries tax rate.

For example:

Item costs $100

Sells for $200

Profit = 200-100 = $100

Tax Payable (20%) = $20

Does B1 have the fuctionality to deal with this scenario built in? If so could somebody point me in the right direction?

Thanks in advance,

James