Auction glossary
Margin scheme
Also known as · VAT margin scheme · Auctioneers' margin scheme
- Definition
- A VAT arrangement available in some countries for second-hand goods, works of art, antiques and collectors' items, under which VAT is calculated on the dealer's or auctioneer's margin rather than on the full selling price.
Whether a margin scheme applies, and how it is calculated for auctions, depends on the country and on the status of the seller and the buyer. Under such schemes, VAT is typically not shown separately on the buyer's invoice. Because the rules differ between jurisdictions, auction houses should confirm their treatment with a tax adviser.
In Selloff, the VAT type is set per lot and tax rules are configured by branch country and client country, so each invoice line follows the treatment the house has defined.
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