VAT Margin Scheme Calculator 2026

The margin scheme is a special VAT settlement method where tax is charged only on the margin — the difference between the sale and purchase price — rather than on the full sale price. It applies to used goods (e.g. cars), works of art, antiques and tourism services.

Gross margin = gross sale price − purchase price. VAT on the margin = gross margin × rate / (100 + rate). For a car bought for PLN 25,000 and sold for PLN 30,000 the margin is PLN 5,000, and VAT at 23%: 5,000 × 23 / 123 = approx. PLN 935. The net margin is 5,000 − 935 = approx. PLN 4,065.

The margin scheme is mainly used by taxpayers reselling used goods bought from parties that did not issue a VAT invoice (e.g. private individuals, exempt taxpayers, other margin-scheme dealers). Typical sectors are used-car trade, second-hand electronics, antiques and works of art.

The margin scheme most often uses the standard 23% rate. The 8% rate may apply to selected categories, such as certain works of art or tourism services. The rate depends on the type of good or service — confirm the correct rate for your sale before issuing the invoice.

No. A margin-scheme invoice does not show a VAT amount, so the buyer cannot deduct input VAT. For this reason a margin-scheme purchase is often less attractive to VAT-registered businesses and more attractive to consumers and VAT-exempt entities.

A margin-scheme invoice should carry the appropriate marking, e.g. "margin scheme — second-hand goods", "margin scheme for travel agents" or "margin scheme — works of art", depending on the subject. The invoice shows neither the rate nor the VAT amount — only the amount due.

Yes, the margin scheme is popular in used-car trading because VAT is paid only on the profit (margin), not on the full vehicle price. For a car bought from a private individual for PLN 25,000 and sold for PLN 30,000 the tax is computed on the PLN 5,000 margin, significantly lowering the VAT burden.

The purchase price is the amount paid to the supplier for the acquired good. As a rule it does not include additional costs (e.g. transport or repairs), which are settled separately. Confirm the detailed rules for the acquisition price with an accountant, as they directly affect the margin and VAT.

No. Since the goods were acquired without VAT (e.g. from a private individual) or under the margin scheme, the seller does not deduct input VAT on purchase. The margin mechanism is precisely the answer to a situation where there was no VAT to deduct on acquisition.

No. The VAT margin scheme calculator gives an indicative VAT-on-margin amount based on the entered prices and the chosen rate as at 2026. It does not account for individual conditions, additional costs or special rules. Confirm the figures with an accountant or tax adviser before filing.