We’re all familiar with Value Added Tax (VAT), but there are some exceptions to the standard 20% rate of VAT. Among the exceptions is the VAT Margin Scheme, a method of calculating VAT for businesses selling used goods such as used mobile phones.
The VAT Margin Scheme differs from standard rate of VAT in two ways: the rate is 16.67% and only charged on the margin you make selling the product.
Phoenix Cellular created a VAT calculator to help you understand the VAT options available on used mobile phones.
Please consult your accountant or HMRC for detailed guidance.