VAT margin schemes were launched in 2007 for “taxable dealers” in EU Member States.
This regime offers advantages in the resale of specific goods, such as used smartphones, because it allows you to preserve the net margin by paying less VAT.
The regime applies to:
For this regime to apply, products must be purchased from:
Products are NOT eligible when:
The regime is optional. It will still be possible for second-hand smartphones purchased using VAT on margin to be processed with “classic” VAT (Art 297 C of the French General Tax Code), for companies wanting to recover the VAT (rental company, integrator, etc…). The reverse is not possible.
VAT margin products leaving the EU are exempt from VAT.
The special wording "TVA sur Marge régie par l’article 297 du CGI" (Margin VAT Margin governed by article 297 of the CGI) must appear and the VAT rate of 0% applied on the invoice.
The amount of margin VAT can never appear on the purchase or sale invoice.If you sell the stocks to another EU member state, the scheme remains the same: the VAT collected is to be declared in France and the wording "Margin VAT" in English must appear on the invoice. Your declaration of exchange of goods (DEB) must be regularised according to regime code 29.
There are two systems for calculating margin VAT, “piecemeal” or “globally”.
You buy a batch of “Margin VAT” refurbished iPhones from a verified seller on Dipli.
The unit purchase price is € 200 including tax (= € 200 excluding tax).
You resell these products to your end customer at € 275 including tax.
>> Resale margin VAT:
Your commercial margin including tax: 275–200 = € 75.
Your commercial margin excluding tax: 75/1.2 = € 62.50
VAT amount: 62.5 X 20% = € 12.50
Your net margin: 75–12.5 = € 62.50
>> Resale classic VAT:
Turnover excluding tax: € 275/1.2 = € 229.17 excluding tax
VAT amount: € 45.83
Your net margin: € 275 - 200 - 45.83 = € 29.17
Products may be considered to have undergone repair if this only results in a simple repair and not a complete renovation. The value of the parts for the reconditioning must not exceed the value of the smartphone which has been reconditioned, otherwise “classic” VAT must be used.
Costs incurred for the repair by the dealer when acquiring used goods are not included in the purchase price and therefore cannot be deducted from the tax base.
https://ec.europa.eu/taxation_customs/ business/vat/eu-vat-rules-topic/special-schemes_fr TVA - Sectoral regimes - Second-hand goods, works of art, collectibles or antiques… The taxation concerns the sales of used goods made by the people who have used them for the needs of… bofip.impots.gouv.fr
https://www.sirrmiet.fr/
https://www.entreprises.cci-paris-idf.fr/web/ reglementation/developpement-entreprise/droit-fiscal/regime-tva-biens-occasion
https://www.nextinpact.com/news/ 107168-a-lassemblee-pas-tva-a-taux-reduit-pour-appareils-reconditionnes.html