Buying and selling goods in Northern Ireland using the VAT margin scheme

There are special rules if you buy and sell goods between Northern Ireland and the EU and between Great Britain (England, Scotland and Wales) and Northern Ireland.

Second-hand goods that are purchased within Northern Ireland can be sold under the margin scheme using the normal rules. The rules are set out in the VAT margin scheme guidance.

Buying goods from Great Britain to sell in Northern Ireland

Second-hand goods sourced in Great Britain are not normally eligible to be resold in Northern Ireland under the margin scheme.

Motor vehicles sourced in Great Britain for resale in Northern Ireland can no longer use the margin scheme.

Vehicles moved on or after 1 May 2023 may be eligible for the second-hand motor vehicle payment scheme.

Selling from Northern Ireland to Great Britain

Buying goods from the EU to sell in Northern Ireland

Buying goods from a private individual in the EU

These are treated in the same way as goods sourced within Northern Ireland. The normal margin scheme rules apply for eligibility, invoicing, record keeping and accounting.

Buying goods from an EU VAT-registered business

Margin scheme invoices must include one of the following indications:

If your purchase invoice shows margin scheme indications

You may receive an invoice for a supply from an EU member state which shows one of the margin scheme indications. If so, you can enter the details into your scheme records if you’re sure that the supply is made under a margin scheme.

If your purchase invoice shows a VAT number

If your purchase invoice shows your VAT number but does not show one of the margin scheme indications, then it’s likely that the goods have not been supplied under a margin scheme.