The VAT margin scheme for second-hand goods

If you buy and resell second-hand goods—whether it's used furniture, vintage clothing, refurbished electronics, or art—the Dutch tax system gives you a break. Instead of charging VAT on the full selling price, you can charge it only on your profit (the margin). This is the margeregeling (margin scheme), and it's a significant advantage when you're working with items that have no original purchase invoice with VAT on it. This guide explains who qualifies, how it works, and exactly what you can and cannot do on your invoices.

What is the margin scheme (margeregeling)?#

The margin scheme is a special VAT rule for dealers in second-hand goods, used art, and collectibles. Normally, you charge VAT on the full selling price. But when you buy a used item with no VAT receipt, charging VAT on top of what you paid would mean double-taxing the customer—they'd pay VAT on the original cost plus your margin. The scheme sidesteps this by letting you charge VAT only on your profit margin: the difference between what you bought it for and what you sell it for.

When you qualify#

The margin scheme applies when:

• You purchase second-hand goods without a VAT invoice (or with a VAT invoice that shows 0% or a different VAT rate)
• You resell them within the European Union or to anyone
• Your goods fall into allowed categories: second-hand goods, used art, collectibles, or items of artistic, historical, or archaeological value
• You are VAT-registered (you cannot use this scheme under the KOR)

The scheme does not apply to:

• New goods you buy from other traders with a full VAT invoice
• Goods where you have a purchase receipt showing VAT (unless that VAT was not actually charged)
• Services or digital goods
• Your own stock of items you originally bought as new

The inkoopverklaring (purchase declaration)#

A cornerstone of the margin scheme is the inkoopverklaring (statement of origin). When you buy a second-hand item from a private seller or dealer in the Netherlands, the seller must provide you with this declaration. It confirms:

• The selling price of the item when they sold it to you
• A confirmation that no VAT was charged on that sale (or that it was exempt)
• The seller's details (name, address, and VAT number if they have one)

What the inkoopverklaring must include#

The document does not need to be fancy or official. It must state:

• Your name and VAT number (as the buyer)
• The seller's name and address (and VAT number if they're VAT-registered)
• A description of the item
• The purchase price you paid
• A statement that VAT was not charged (or that it was exempt/zero-rated)
• The date of the sale

Keep all inkoopverklaringen for the full 7-year record-keeping period. If you cannot produce them during a tax audit, the Belastingdienst may disallow the margin scheme and demand you recalculate VAT on the full selling price retroactively.

Two calculation methods: individual vs. globalisatie#

You have two ways to apply the margin scheme. You must choose one method at the start of your tax year and stick with it.

1. Individual method (item-by-item)#

You track the purchase price and selling price for each item separately. At the end of the quarter:

• Add up all your purchase prices (what you paid)
• Add up all your selling prices (what you received)
• Calculate the margin: selling price minus purchase price
• Charge VAT only on that total margin (21% in most cases)

Example:

Item A: bought €50, sold €80 → margin €30
Item B: bought €120, sold €180 → margin €60
Item C: bought €200, sold €250 → margin €50

Total purchase prices: €370
Total selling prices: €510
Total margin: €140

VAT on margin: €140 × 21% = €29.40

The individual method is most common for dealers with a small number of items or high-value pieces.

2. Globalisatie method (annual lump-sum)#

If you have many items, you can use the globalisatie method: at the end of the calendar year, you add up all purchases and sales for the entire year, calculate the annual margin, and apply VAT retroactively. You then adjust your last quarterly return of the year.

This method is administratively simpler if you process high volumes but requires careful year-end accounting.

The critical rule: what your invoice must NOT show#

This is where many dealers slip up. When you invoice a customer under the margin scheme, your invoice must not show a purchase price. Here's why:

If you list both the purchase price and selling price, the customer might mistakenly think they can reclaim VAT on the difference or question why you're charging them VAT at all. It also creates an audit trail that complicates your own VAT position.

Your invoice MUST show:

• Description of the item
• Your selling price (the total amount you charge the customer)
• VAT at 21% (or the applicable rate) on the margin — but simply as a single VAT line without breaking out the calculation
• The total (selling price + VAT)
• Your VAT number

Your invoice must NOT show:

• The purchase price you paid
• Any reference to "margin scheme" or "margeregeling"
• A breakdown like "purchase €100, margin €50, VAT €10.50"
• The customer's cost base (they don't need to know what you paid)

From the customer's perspective, it looks like a normal VAT invoice. You file the VAT correctly in your return using the margin calculation.

How the margin scheme affects your VAT return#

In your quarterly BTW return (on Mijn Belastingdienst Zakelijk), the margin scheme appears under a special rubric. Instead of reporting sales and input VAT separately, you:

1. Report your total sales (selling prices of all second-hand items) in the relevant box
2. Report the VAT calculated on the margin (not on the full sales amount) in the VAT box
3. Do not claim input VAT on your purchases (because there usually is none)

The exact boxes depend on whether you're selling to Dutch customers only or also to the EU; your accountant or the Belastingdienst website will guide you. The key difference is that you're not trying to reclaim VAT on purchases—you're simply paying a lower VAT because it's only on your profit, not your revenue.

Common pitfalls and how to avoid them#

Mixing new and used goods: If you buy some items new (with a VAT invoice) and some used, you cannot apply the margin scheme to the new ones. You must use standard VAT rules for new goods and the margin scheme only for the used items. Split your invoicing accordingly.

Losing your inkoopverklaring: Without proof of your purchase price, the Belastingdienst may assume you bought the item for zero and therefore owe VAT on 100% of the selling price. Store these documents with your accounting records.

Unregistered sellers: If you buy from a private individual without a VAT number, the inkoopverklaring process is simpler—just get them to confirm the price and that no VAT was charged. Document it in writing.

Goods bought with partial VAT: If you buy an item from a dealer who charged 9% VAT (e.g., a used book), you still cannot use the margin scheme. The scheme applies only when there is no VAT invoice or a zero-rate invoice. If VAT was charged, use standard rules.

Frequently asked questions#

The margin scheme is a powerful tool for dealers in second-hand goods, art, and collectibles. It levels the playing field by letting you charge VAT only on your profit, not the full price. The key is meticulous record-keeping: save your inkoopverklaringen, track your purchase and selling prices carefully, and keep your invoices clean. When you do, your VAT returns become straightforward, and you avoid the risk of a costly audit correction. If you're unsure about whether an item qualifies or how to document a particular purchase, contact the Belastingdienst directly or consult a tax advisor. Getting it right from the start is far cheaper than unwinding errors later. For freelancers and small dealers, accurate VAT handling—including the margin scheme—is exactly what ZZP Belasting helps you manage reliably.

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