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Introduction¶

VAT Margin Scheme by Codadot is an extension that allows you to implement and use the VAT Margin Scheme in Business Central. The VAT Margin Scheme is a special method of calculating VAT for businesses that trade in used or second hand goods.

About the VAT Margin Scheme¶

As second hand goods are often traded in by private individuals, you can't claim back VAT from the authorities. As this would be unfair to businesses, the European Union and the United Kingdom have a so-called VAT Margin Scheme, where the VAT is calculated over the profit margin. You record the purchase price you initially paid for purchasing and VAT is only calculated over the difference between the purchase price and sales price. As the purchase price is a sensitive price, you are allowed and advised to have the VAT on the invoice shown as zero, under the condition that you add a clause.

VAT Margin Scheme in Business Central¶

Out of the box, Microsoft Dynamics 365 Business Central does not support the VAT Margin Scheme. However, if you use VAT Margin Scheme by Codadot, you will be able to use the VAT Margin Scheme.

Supported features¶

• Set for which VAT posting group combination VAT should be calculated over the profit margin
• Override the VAT product posting group on serial number level
• Determines initial purchase price using item ledger entries and value entries automatically
• Prices for selling VAT Margin Scheme items are the same, regardless of prices excluding VAT or including VAT
• VAT entries contain the profit used for VAT instead of full line amount
• Easily view and select serial numbers in the order/(posted) invoice lines.
• Print VAT as zero on the invoice, even though VAT is posted to the ledger
• Print serial numbers on sales documents without report adjustments
• Print serial numbers on sales documents with report adjustments
• Supports legacy invoice posting and interface invoice posting