Are you running your repair shop using a POS software? Do you also trade used and secondhand devices at your repair shop? Is your POS software smart enough to provide VAT Margin Scheme support for your purchase and sales of used devices? Let’s find out.
A repair shop software is more than just about a point of sale screen and a quicker checkout process. It needs to cover your back in everything.
Since VAT Margin is a substantial feature for EU repair retail, here’s the list of elements that your repair shop software needs to check off to offer full VAT Margin support.
Designated Marginal Tax
Having a distinct tax option for VAT Margin is an obvious thing. The settings to configure marginal tax on your trade-in sales are must-have, so you can buy and sell used devices from and to your customers.
If you purchase used devices from a trusted supplier and then sell them to customers, you may also want to look for the option to select specific inventory items that you want to sell under the marginal tax.
Accurate VAT Margin Calculations
Once you have enabled the marginal tax, added its percentage, and configured it for all the used devices stock, you need to move on analyze the calculator. See if the POS software performs accurate calculations with the purchase and sale prices of a used device sale and tells you the amount of VAT you have to pay under the Margin Scheme.
The whole point of using the Margin Scheme is doing profitable trades. So you need to have a clear picture of the profit you will be making on each used device sale along with the amount of tax you’ll be paying for it. Your POS software should tell you the profit while you’re selling the device to your customer. An explicit VAT Margin report for your used device sales will be an absolute plus.
Keeping the right record of your used device trades is mandatory for VAT Margin Scheme. So you cannot miss this one. Make sure that your repair shop software includes all the necessary details on the purchase and sale invoices of each used device trade. You can then save, print, and share those invoices with HMRC while applying for the Margin Scheme.
Tick them all
That’s it. If your POS software is ticking off all these essentials of Margin Scheme support, that’s good news. You have got a smart tool to help you shine in the business of used devices. A piece of even better news is that RepairDesk is integrating all of it to provide the best VAT Margin support for your repair shop. So, look no further and tune in to RepairDesk for this exciting new feature.
Let us know if you are interested in our VAT Margin Scheme support by filling out this form and we will hook you up with the best POS software that has it all.