Margin goods and new goods | EasyConsign course

A secondhand shop usually has two kinds of things. For BTWVAT they're different. First choose the country your shop is in, above: part of this lesson depends on it.

Margin goods

Secondhand things you got without BTWVAT are margin goods. Think of clothes from consignors, or things you bought from private people.

On those you don't pay BTWVAT on the whole price, only on your margin: what you got for it, minus what you paid for it. Receipts don't show BTWVAT for margin goods.

Question 1

A consignor brings a used coat. What is that coat usually, for tax?

Margin goodsA new item at the standard rateSomething without tax

New goods

Things you bought with BTWVAT aren't margin goods. Think of new socks or bags from a wholesaler. On those you charge BTWVAT as usual, 21% or 9%20%, 5%, or 0%, and it's included in the price.

In the UK, children's clothes and children's shoes are 0%.

Question 2

You sell new socks you bought from a wholesaler. Which BTW rate is most likely?

No BTW, because it's a secondhand shop21%, the standard rateBTW on the margin only

Question 2

You sell new adult socks you bought from a wholesaler. Which VAT rate is most likely?

No VAT, because it's a secondhand shop20%, the standard rateVAT on the margin only

Choosing per item

For each item you choose in EasyConsign whether it's margin goods or not. After that EasyConsign keeps them apart by itself: on the receipt, under Sales and in Calculate and download.

Not sure about an item? Ask your accountant before you sell it. Fixing it afterwards is more work.

Question 3

Where do you choose whether an item is margin goods?

At the register, at checkoutOn the item itself, when you add itAt the end of the quarter

Want to know more?

The help center shows exactly which buttons to use.

Read the guide: VAT and the margin scheme