Buying and selling horses and ponies using the British Equestrian Trade Association form
How to use the British Equestrian Trade Association (BETA) form when buying and selling horses and ponies.
If you buy or sell second-hand horses and ponies using a VAT margin scheme, you can use the British Equestrian Trading Association (BETA) form for your stock and sales records you need for the margin scheme. If you use this, then you do not need to keep a stock book or invoices.
Rules for using the BETA form
You can use the British Equestrian Trading Association form if you:
- buy a horse or pony from a person who has not used the form themselves
- sell to someone that has not opted to use the form
You should use one form for each horse or pony you buy or sell under a margin scheme.
You must not alter the serial number on the form.
If you do not complete the form correctly, HMRC will not be able to confirm the margin you have declared, and you’ll have to account for VAT on the full selling price.
You can buy the BETA form from the British Equestrian Trade Association by using the ‘Contact BETA’ form.
The BETA form has 3 parts:
- part A — your stock record
- part B — your copy sales invoice
- part C — your customer’s purchase invoice
You will need to follow the normal invoicing rules for your purchase, but part C of the form can be treated as a margin scheme invoice for your sale.
Buying using the BETA form
- Complete the ‘description’ and ‘written description’ sections of parts A, B and C of the form.
When completing the description, you must follow the standards set by the Royal College of Veterinary Surgeons (RCVS).
These standards can be found on the Weatherbys website by clicking on the link ‘Identification of Horses Booklet’.
2. Write the unique identifying number of the horse’s passport in the space for ‘reg no’. If the horse or pony does not have a passport, you and a vet must sign parts A, B and C of the form to certify that the horse or pony is the one described on the form.
If the purchase price of the horse or pony is £500 or less, you do not need the vet’s signature.
3. Give the form a stock number in numerical order.
4. Complete the ‘purchase record’ section on the reverse of part A.
5. Keep all 3 parts of the form. You’ll need them when you resell the horse or pony.
Buying from someone who is selling under a margin scheme using the BETA form
You should follow the steps in the section titled ‘Buying using the BETA form’. In addition, the person you are buying from will:
- give you part C of their form for you to keep with your own partially completed form
- not need to sign the declaration on the reverse of part A
The horse or pony may not have a passport and have a purchase price of £500 or more. If so, the part C you’re given must have been signed by a vet. You need to copy these details on to your form, but you do not need the vet to sign it.
Buying at auction using the BETA form
You should follow the steps in section ‘Buying using the BETA form’.
The auctioneer should also give you part C of the seller’s form for you to keep with your own partially completed form.
You must get the auctioneer to complete the reverse of part A of your form with their:
- name
- address
- lot number
Selling using the BETA form
- Check that the horse or pony is eligible to be sold under a margin scheme — read section ‘When you can use the margin scheme’ in this guide.
2. Check that you followed the steps section ‘Buying using a BETA form’ when you bought the horse or pony. If you have not, you cannot use the British Equestrian Trade Association form when you sell the horse or pony.
3.Complete the sales record sections on the reverse of parts A, B and C.
4. Complete the VAT record section on the reverse of part A.
5. Keep parts A and B.
6. Give part C to the buyer.
7. Complete the VAT summary sheet.
If you are selling a horse or pony at auction using the BETA form
You should follow the steps in section ‘Selling using the BETA form’ in this guide.
At the auction you should also:
- tell the auctioneer that your horse or pony is being sold under a margin scheme using a BETA form
- give the auctioneer completed parts B and C of your form
After the sale:
- the auctioneer will complete the sales details on the reverse of parts B and C, adding their name and address
- the buyer will get part C
- you’ll receive part B
- you should complete the sales and VAT records sections on part A of your form
How to work out the margin and VAT due
You should calculate the margin and VAT due using the normal margin scheme rules.
Further information
You must show any goods you buy or sell using a margin scheme on your VAT return.
If you use an agent
You should refer to the specific rules that apply for agents – read Using the VAT margin scheme if you’re an agent.
Tertiary legislation
You can find the legal conditions in VAT Tertiary Legislation:
- Section 2.4 — additional information requirements for horses and ponies
- Section 2.5 — BETA scheme for horses and ponies