© 2025 by Michael Firth KC, Gray's Inn Tax Chambers
Contact: michael.firth@taxbar.com
P5. Second hand goods margin scheme
Purpose
- Uniform arrangements across member states
"[32] It follows from the second, third and fifth recitals of Directive 94/5 that the Community legislator sought to achieve some harmonisation of very different arrangements applicable in the Member States concerning the taxation of second-hand goods, works of art, collectors’ items or antiques in order to avoid double taxation and distortions of competition, both within those Member States and in relations between them." (Jyske C-280/04)
Scope
- Goods imported or purchased with a view to resale
"[32] ... In the circumstances, to interpret the expression ‘with a view to resale’ as relating only to import activities would be contrary to the overall objective of putting in place uniform arrangements in the areas of second-hand goods, works of art, collectors’ items and antiques, which the Community legislature had thereby set itself. Consequently, that expression should be considered to apply also to purchases and acquisitions for the purposes of the undertaking." (Jyske C-280/04)
-Even where resale is secondary purpose (e.g. after hiring goods out)
"[42] In the circumstances, taking account of the aims of Article 26a of the Sixth Directive, that article is to be interpreted as meaning that it does not exclude from the category of taxable dealer sale and leaseback undertakings which purchase cars second-hand, when the resale forms part of their normal business and the intention to resell is present at the moment of purchase, even when the reselling is secondary in comparison with the leasing." (Jyske C-280/04)