As a LEGO® business owner you might buy collector's items or second-hand bricks from private individuals. However, these private individuals don't calculate VAT. However, you do! This means that you would have to charge VAT on goods without being able to deduct that same VAT on the initial purchase. That's quite unfair, but luckily we can make use of the VAT margin scheme.
When buying bricks from private individuals and selling them with VAT, the VAT is basically paid twice. After all, VAT has already been paid on the first purchase. The European margin scheme prevents this by allowing merchants to charge VAT on their profit margin instead of the sales price. This way, you can charge your customers less taxes, so you can keep your prices low - without cutting in your margins.
You can use the VAT margin scheme to your advantage if you're buying and selling collectibles and second-hand goods. You don't even have to apply for anything; you're only required to keep track of your purchase and selling prices. However, keeping those records on thousands of individual LEGO® parts accurately can become quite chaotic. Luckily, Bricqer keeps track of all of this data for you.
Bricqer keeps records of all purchases qualified for the VAT margin scheme. We then automatically calculate the right amount of taxes on orders and process those orders correctly in your financial accounts. In addition, we have extensive VAT exports to import directly or to use for your tax returns. This way, we save you a lot of administrative hassle while keeping VAT to a minimum.
By default, most marketplaces, such as BrickLink and BrickOwl, don't have support for the margin scheme. You can't easily specify your cost per individual item, let alone when you've got thousands of them. However, Bricqer keeps track of all the required data. After receiving an order, we automatically calculate the right amount of VAT, regardless of the marketplace.
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