Margin VAT Scheme with Paysera POS
What is the margin VAT scheme?
The margin VAT scheme is a special way of taxation where VAT is calculated not on the full selling price, but only on the margin - the difference between the selling and purchase price. The scheme applies to sellers of second-hand goods, works of art, collectors' items and antiques under Articles 106-110 of the Lithuanian VAT Law.
Calculation example
- Purchase price of the item
- EUR 100
- Selling price
- EUR 200
- Margin
- EUR 100
- VAT due (21%)
- EUR 17.36
VAT = margin × 21 / 121
Under the standard VAT scheme, a EUR 200 sale would incur EUR 34.71 of VAT - in this case the margin scheme saves almost half.
VAT only on the margin
Tax is calculated on the difference between the selling and purchase price, not on the full sale amount
Special receipt annotation
The receipt includes a mandatory annotation, while the VAT rate and amount are not shown (VAT Law Art. 108)
Loss - no VAT
If an item is sold for less than it was purchased, no VAT is due on that sale
Who can use the margin VAT scheme?
Suitable when selling
- Second-hand goods - cars, electronics, clothing, furniture
- Jewellery bought from private individuals
- Works of art
- Collectors' items - coins, postage stamps
- Antiques
- Goods accepted on consignment
Key conditions
- Goods were purchased from persons who could not deduct input VAT (e.g. private individuals or non-VAT payers)
- Separate purchase and sale records are kept for each item (VAT Law Art. 109)
Consult your accountant
Whether the margin scheme can be applied to your business depends on how the goods were acquired - we recommend consulting your accountant or the State Tax Inspectorate (VMI).
How does margin VAT work in Paysera POS?
Purchase price tracking
Enter the purchase price of an item - the system links it to the specific product and uses it to calculate the margin. Separate records per item, as required by VAT Law Art. 109.
Automatic VAT calculation
At the moment of sale, the system automatically calculates the margin and the VAT due. If the margin is negative or zero, no VAT is applied.
Compliant receipt
The receipt automatically includes the mandatory margin scheme annotation, while the VAT rate and amount are not shown - as required by VAT Law Art. 108.
Mixed receipts and i.EKA
You can combine margin scheme and regularly taxed items on a single receipt. All data is automatically transmitted to the VMI i.EKA system.
FAQ about margin VAT
What is margin VAT?
Margin VAT is a special VAT calculation scheme (Lithuanian VAT Law Art. 106-110) where tax is calculated only on the margin - the difference between the selling and purchase price. Example: you bought an item for EUR 100 and sold it for EUR 200 - you pay VAT only on the EUR 100 margin (EUR 17.36), not on the full selling price.
Who can use the margin VAT scheme?
The scheme is intended for VAT payers trading in second-hand goods, works of art, collectors' items or antiques, when the goods were purchased from persons who could not deduct input VAT (e.g. private individuals). We recommend consulting your accountant or VMI about eligibility for your business.
What does a margin scheme receipt look like?
Under VAT Law Art. 108, the receipt must include a special annotation about the margin scheme, while the VAT rate and amount are not shown. Paysera POS generates such a receipt automatically - no extra steps needed.
Can margin scheme and regular items be sold on one receipt?
Yes. Paysera POS supports mixed receipts - some items can be taxed under the margin scheme while others use the standard rate. The system applies the correct calculation and receipt marking for each item.
What if I sell an item for less than I paid for it?
If the margin is negative or zero, no VAT is due on that sale. Important: the margin is calculated separately for each item - a loss on one item does not reduce the margin of other items.
How do I enable margin VAT in Paysera POS?
The feature is included in all plans at no extra cost. Contact our team - we will enable the margin scheme on your account and help you set up purchase price tracking.
Start selling with margin VAT
Margin VAT is included in all plans at no extra cost. Contact us - we will help you enable and configure it.