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Voitto Knowledge Base

Profit margin taxation

Last updated: 2021-06-21

When selling certain types of goods, it is possible to apply profit margin taxation. This means that the VAT is calculated on the difference between the selling price and the purchase price, unlike in normal cases when the VAT is calculated on the selling price.

These types of goods are subject to profit margin taxation:

  • Used goods
  • Artwork
  • Collector’s items
  • Antiques

In order for profit margin taxation to be applied, it is required that the person selling the goods has bought it from someone who did not have the right to deduct VAT on the purchase. In other words, if VAT was added to the item when it was purchased, it is not possible to apply profit margin taxation.