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HMRC internal manual

VAT Margin Schemes

The auctioneers’ scheme: General principles of the auctioneers’ scheme

When an auctioneer invoices in his own name for goods sold at auction on behalf of a third party vendor, the goods are treated for VAT purposes as supplies both to and by the auctioneer.

In such circumstances, he is treated for VAT purposes as the principal in the supply of the goods.

As a principal he is entitled to either:

  1. use the margin scheme (as detailed in VATMARG02000);
  2. use the auctioneers’ scheme (providing the conditions in Notice 718/2 The VAT Auctioneers’ Scheme are met); or
  3. account for VAT in the normal way.

Notice 700 The VAT guide and VTAXPER61500 give further information on the VAT rules for agents.