On 2 October 2026, the Director of the National Revenue Information (KIS) issued an interpretation concerning the VAT margin scheme for a used car purchased at auction. The taxpayer sought to include the auction fee and transport costs in the purchase price (margin base). KIS ruled that only amounts paid or payable to the supplier of the vehicle (the seller) form part of the acquisition cost; fees paid to the auction house and transport costs are excluded from the margin base under Article 120(4) of the VAT Act.
Key Takeaways
- Strict Margin Base Definition: The purchase price for margin scheme purposes comprises solely the consideration paid to the transferor of the goods; intermediary fees are not included.
- Transport Cost Treatment: Transport costs incurred after the transfer of ownership are not part of the acquisition price and cannot reduce the taxable margin.
- Compliance Impact: Dealers using the margin scheme must ensure their invoicing and record-keeping separate supplier payments from ancillary costs to avoid VAT understatement.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement