VAT and the margin scheme

Margin goods and goods with VAT, and how EasyConsign works out the VAT on your margin.

Updated October 20, 2026

Your shop is in

A secondhand shop usually has two kinds of goods. For BTWVAT, that makes a difference. Part of this guide depends on the country your shop is in. Choose the country at the top.

This is a guide to get you started, not tax advice. When in doubt, ask your accountant or check the website of the Dutch tax authority (Belastingdienst).

This is a guide to get you started, not tax advice. When in doubt, ask your accountant or check HMRC's guidance on gov.uk.

Margin goods

Secondhand goods you got without BTWVAT, for example from private individuals or from consignors. 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.

New goods

Goods you bought with BTWVAT, for example new socks from a wholesaler. You charge BTWVAT on those as usual, 21% or 9%20%, 5%, or 0%, included in the price.

In the UK, children's clothes and shoes are zero-rated (0%).

For each item, you choose whether it's a margin good or not. EasyConsign then keeps them apart for you: on the receipt, under Sales and in Calculate and download.

The margin over a whole period

You don't have to work out the margin per item. You take the total for each tax period:

Sales of margin goods minus purchases of margin goods = margin

In The Netherlands, this is called the globalisatieregeling (global margin scheme). At 21% BTW, 21/121 of that margin is BTW. An example: this quarter you sell €5,000 of margin goods, and your consignors get €2,000 of that. Your margin is €3,000, of which €520.66 is BTW.

In the UK, this is called global accounting, under the VAT margin scheme. At 20% VAT, 1/6 of that margin is VAT. An example: this quarter you sell £5,000 of margin goods, and your consignors get £2,000 of that. Your margin is £3,000, of which £500 is VAT.

Global accounting doesn't apply to an item you bought for more than £500, or to cars, motorcycles, boats and caravans.

For a consignment shop, your "purchases" are mostly what consignors get for their sold items. EasyConsign counts that for you. Did you buy secondhand goods yourself? Enter them under Add expense as a margin good.

A negative margin

Bought more than you sold in a period? Then you pay no BTWVAT on margin goods. You carry the amount below zero over to the purchases of the next period. EasyConsign shows how much that is.

A small shop

If your revenue is under €20,000 a year, you can sign up for the kleineondernemersregeling (small business scheme). You then don't charge BTW, but you also can't reclaim BTW on your expenses.

You have to register for VAT when your taxable turnover over the last 12 months goes over £90,000. There are a few other rules, for example for one very large order. Check GOV.UK for those. You may also register voluntarily.

Under Accountancy > Taxes in your dashboard, you'll find the guide for your shop's country, with a link to the government. How to get the numbers is in Calculate and download.