Term · VAT
Margin scheme (margeregeling)
A VAT scheme for selling second-hand goods, such as cars, under which you only pay VAT on your profit margin and not on the full selling price.
For example, you buy a car from a private individual for €10,000 and sell it for €12,100. You then only pay VAT on the €2,100 margin.
For the margin scheme, you keep separate records for each item, with the purchase and selling price.