Global Accounting scheme

Global Accounting calculates margin VAT on a pool of purchases and sales, rather than per item. It suits businesses with large volumes of low-value second-hand goods.

Key rules

• Item value cap of £500 — anything above goes through the standard margin scheme instead.
• Negative margins carry forward to future periods, never become a refund.
• Closing stock at year-end must be valued and held back from the calculation.