Query: Marginal VAT

[Jarvis]

Has anybody got any experience of applying 'Marginal VAT' to products?

Our client sources materials and goods from the general public and sells them on.

Because they cannot obtain a VAT reciept from a member of the public, they use the Marginal scheme which requires them to charge VAT on the difference of the Purchase Price and their Selling price.

eg: Buy at £100, sell at £200. Profit = £100 and VAT is £17.50
Therefore £217.50.

However, not ALL products on the website are dealt with like this.
Some are normal.

How on earth do you deal with that one?

[Jan]

The only way that this could be done is to use custom VAT, so the customer enters the amount of VAT they wish to charge manually for each item.

Regards,

[Mike Hughes]

Could you do this by making the product consist of a VAT free component at the purchase price and the balance at the product price (or vice versa).

Just an idea, so don't shoot me if it doesn't work!

Mike

Edit: Jan's solution makes much more sense.

[Jarvis]

Blimey!
Two replies in 4 minutes!

I have looked at the 'Custom' solution and this looks to be the way to go.
I was rather hoping for a less labour intensive solution.

The only trouble with the custom solution is that the profit margin needs to be known at the time of entering.
Some of the products are open to negotiation and will be dealt with using MOTO.

Then again, that's going to be a problem with any solution.