# Margin scheme

> 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.

- URL: https://www.selloff.auction/glossary/margin-scheme
- Language: English
- Also known as: VAT margin scheme, Auctioneers' margin scheme
- Last updated: 2026-10-07
- Français: https://www.selloff.auction/fr/glossaire/regime-de-la-marge.md

## 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.

## Related features

- [VAT & international tax](https://www.selloff.auction/features/vat-international-tax.md): Apply the right VAT to every invoice line by branch and client country, with dated rates, foreign VAT and a VAT report for your return.

## Related terms

- [VAT on buyer's premium](https://www.selloff.auction/glossary/vat-on-buyers-premium.md): The value added tax charged on the buyer's premium, which pays for a service provided by the auction house. Its rate and calculation depend on the country of sale, the tax status of the lot and sometimes the buyer's location.
- [Buyer's premium](https://www.selloff.auction/glossary/buyers-premium.md): A charge, usually a percentage of the hammer price, that the buyer pays to the auction house on top of the hammer price. The rate is published in the conditions of sale and can differ from one sale to another.
- [Buyer's invoice](https://www.selloff.auction/glossary/buyers-invoice.md): The invoice issued to the successful bidder after the sale, listing the lots bought with their hammer prices, the buyer's premium, applicable taxes and any shipping or other charges.