VAT margin scheme invoice example and record-keeping rules
What a margin scheme invoice must contain, a VAT margin scheme invoice example for a used car, and the stock book records dealers must keep.
· 8 min read
A margin scheme invoice for a used car contains the normal invoice details, a reference to the margin scheme ("Margin scheme – Second-hand goods" or your national wording) and one total price with no VAT shown. Behind every invoice, the dealer must keep records of each car's purchase price, selling price and margin. Below are an invoice example and a stock book layout for any EU country.
What a margin scheme invoice must say
A margin scheme invoice must contain the standard invoice details of Article 226 of the VAT Directive 2006/112/EC, plus the special margin scheme reference, and must not show the VAT separately. The standard details include:
- date of issue,
- a sequential invoice number,
- your VAT identification number,
- your full name and address and the customer's,
- a description of the goods (make, model, VIN, first registration, mileage),
- the date of supply if different from the invoice date,
- the price.
Point (14) of Article 226 adds the margin scheme reference: where the special arrangements for second-hand goods apply, the invoice must carry the mention "Margin scheme – Second-hand goods". Each member state uses its own language version. Examples:
| Country | Required wording | National basis |
|---|---|---|
| EU (English version of the Directive) | Margin scheme – Second-hand goods | Article 226(14) VAT Directive |
| Germany | Gebrauchtgegenstände/Sonderregelung | § 14a(6) UStG |
| Netherlands, Belgium (Dutch) | Bijzondere regeling – gebruikte goederen | National VAT law |
| Poland | Procedura marży – towary używane | Polish VAT Act |
If you sell across borders, use the wording of the country whose VAT law applies to your invoice, which is normally your own, and add the English wording if it helps your customer.
Can VAT be shown separately on a margin scheme invoice?
No. Article 325 of the Directive states that the dealer may not enter separately on the invoice the VAT relating to supplies under the margin scheme. In Germany, § 14a(6) UStG excludes the separate VAT statement for margin scheme supplies, and a dealer who shows the VAT on the margin anyway is liable for the amount shown.
There is a reason for this. A business customer could otherwise try to deduct the VAT shown, while Article 323 forbids any deduction on a margin scheme car. So the invoice shows one price, and the VAT on your margin stays in your own accounts.
What you can do is state the total price clearly and add a neutral note such as "Price includes VAT under the margin scheme; VAT is not shown separately". Do not add a VAT amount, a VAT rate or a net price.
For car dealers
Know your margin before you buy
MyCarDealer compares any car from an auction or listing with the market in your country and shows the net margin after VAT, transport and costs – and the maximum bid.
Request accessVAT margin scheme invoice example for a used car
Here is a margin scheme invoice template for a car sold by a German dealer to a private customer. Replace the bracketed fields with your own data.
| Field | Content |
|---|---|
| Seller | [Dealer name, address, VAT ID] |
| Customer | [Customer name and address] |
| Invoice number | [Sequential number, e.g. 2026-0418] |
| Invoice date | [Date of issue] |
| Date of supply | [Handover date, if different] |
| Vehicle | Volkswagen Golf 1.5 TSI, first registration [date], VIN [17 characters], mileage [km] |
| Included | Two keys, service book, new periodic technical inspection |
| Price | €19,800.00 |
| VAT note | Gebrauchtgegenstände/Sonderregelung (Margin scheme – Second-hand goods) |
| Payment | [Payment method and date] |
No net price, no VAT rate and no VAT amount appear anywhere on the invoice.
In the dealer's own records, the same sale looks like this: purchase price €16,500, selling price €19,800, margin €3,300, VAT on the margin €3,300 × 19/119 = €526.89. For the calculation at other rates, see the VAT margin scheme calculator.
Business customers
If the buyer is a VAT-registered business, the invoice under the margin scheme looks the same: no VAT shown, and the buyer cannot deduct any. If the business customer insists on a VAT invoice, the dealer can opt to sell the car under the normal VAT rules instead (Article 319), but must then charge VAT on the full price.
Purchase documents: proof that a car qualifies
Your right to use the margin scheme depends on how you bought the car, so the purchase document is as important as the sales invoice.
- Bought from a private seller – a written purchase contract with the seller's name, address, ID details if required in your country, date, price and vehicle data. This shows that no deductible VAT was charged.
- Bought from another margin scheme dealer – the seller's invoice with the margin scheme wording and no VAT shown.
- Bought from a business that sold VAT-exempt – an invoice showing the exemption.
If a purchase invoice shows deductible VAT, the car is not a margin scheme car. Our guide to the VAT margin scheme for used cars lists which sellers qualify.
What records must a dealer keep for each margin scheme car?
A dealer must keep records that show, for each car, the purchase price, the selling price and the taxable amount (the margin less VAT). The VAT Directive requires every taxable person to keep accounts detailed enough for VAT to be checked (Article 242), and a dealer who uses both the margin scheme and normal VAT must show the two separately in the accounts (Article 324).
National law spells this out. In Germany, § 25a(6) UStG requires the records to show the selling prices, the purchase prices and the taxable amounts, and separate records where the dealer also applies normal VAT. Most other member states have equivalent rules. How long you must keep invoices is left to each member state (Article 247), so check your national retention period.
What is a stock book and what goes in it?
A stock book is a register with one line per car, from the day you buy it to the day you sell it. The term comes from practice in the motor trade, but the idea matches what every EU tax authority expects to see: a car-by-car trail from purchase to sale.
| Column | Example |
|---|---|
| Stock number | 2026-112 |
| VIN and registration | [VIN], [registration] |
| Make, model, version | Volkswagen Golf 1.5 TSI |
| Purchase date and seller | [date], private seller [name] |
| Purchase document | Purchase contract no. [x] |
| Purchase price | €16,500 |
| VAT scheme | Margin scheme |
| Sale date and buyer | [date], [name] |
| Sales invoice number | 2026-0418 |
| Selling price | €19,800 |
| Margin | €3,300 |
| VAT on the margin | €526.89 |
| Taxable amount | €2,773.11 |
Cars sold under normal VAT go into a separate section or a separate book. Reconditioning invoices belong in your normal purchase records, not in the margin columns, because they do not change the margin. MyCarDealer keeps each car's buying price, expected selling price and margin in one place, which makes it easier to fill these records consistently; you can see how it calculates margins with the free valuation.
Common invoice and record-keeping mistakes
- Showing VAT or a net price on a margin scheme invoice.
- Missing margin scheme wording, or using a wording that does not match national law.
- No purchase document proving the car was bought without deductible VAT.
- Adding repairs to the purchase price in the stock book.
- Mixing margin scheme and normal VAT cars in one register without a clear scheme column.
- Recording losses against other cars – the margin is calculated per car.
Frequently asked questions
What is a margin scheme invoice?
It is an invoice for goods sold under the VAT margin scheme. It shows the normal invoice details and one total price, includes the mention "Margin scheme – Second-hand goods" or the national equivalent, and does not show any VAT amount.
What must a margin scheme invoice say?
Besides the usual details such as invoice number, date, VAT ID, names and addresses, vehicle description and price, it must carry the margin scheme reference required by Article 226(14) of the VAT Directive, for example "Gebrauchtgegenstände/Sonderregelung" in Germany or "Procedura marży – towary używane" in Poland.
Can VAT be shown separately on a margin scheme invoice?
No. Article 325 of the VAT Directive prohibits showing the VAT separately, and in Germany a dealer who shows it is liable for the amount shown. The invoice shows only the total price.
What records must a dealer keep for each margin scheme car?
For each car: the purchase price and purchase document, the selling price and sales invoice, and the taxable amount (margin less VAT). Margin scheme cars must be recorded separately from cars sold under normal VAT.
What is a VAT margin scheme stock book?
It is a register with one line per car showing purchase date, seller, purchase price, sale date, buyer, selling price, margin and the VAT on the margin. It gives the tax authority a complete trail for every margin scheme car.