Margin scheme ― horses and ponies

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides details on the margin scheme for supplies of second-hand horses and ponies. This note should be read in conjunction with the Margin schemes - overviews and Operating the margin scheme guidance notes.

Businesses can sell horses and ponies that have been previously owned under the margin scheme and this was confirmed in the Förvaltnings AB Stenholmen v Riksskatteverket CJEU Case C-320/02. Horses and ponies that have been bred and are being sold for the first time cannot be sold under the margin scheme. Also if VAT is shown as a separate amount on the purchase invoice, the business cannot use the margin scheme if it sells the animal.

It is recommended that businesses selling horses / ponies under the margin scheme follow the special procedures explained below.

Records when using the margin scheme ― the three part British Equestrian Trade Association (BETA) form

Businesses can choose to use a three part form to account for VAT on the sale of the horse / pony under the scheme as an

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Trusts and Inheritance Tax

Transfer of assets to beneficiaries ― legal, administration and tax issues

Transfer of assets to beneficiaries ― legal, administration and tax issuesThis guidance note outlines how assets are transferred to beneficiaries and the tax consequences that flow from the transfer. Whether a payment is income or capital is discussed in the Payments to trust beneficiaries guidance

14 Jul 2020 13:52 | Produced by Tolley Read more

Personal Tax

Foreign tax relief

Foreign tax reliefIncome and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting

14 Jul 2020 11:44 | Produced by Tolley Read more

Tax Returns

Value Added Tax

Supplies of goods and services connected with education

Supplies of goods and services connected with educationThis guidance note provides an overview of the VAT treatment of goods and services provided in connection with supplies of education. This should be read in conjunction with the following guidance notes:•Supplies of education•Local authority

14 Jul 2020 13:44 | Produced by Tolley Read more

UU��ֱ��