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VAT Margin Scheme

Former Member
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In the EU there is a a Tax system called the VAT Margin Scheme which is applied to the sale of 2nd-hand goods.

It works by taking the purchase price of an item, including transport, packaging, insurance etc. , and subtracking it from the sale price, leaving only the profit. Only the profit is then taxed according to that countries tax rate.

For example:

Item costs $100

Sells for $200

Profit = 200-100 = $100

Tax Payable (20%) = $20

Does B1 have the fuctionality to deal with this scenario built in? If so could somebody point me in the right direction?

Thanks in advance,


Accepted Solutions (0)

Answers (4)

Answers (4)

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Hi James,

unfortunately, B1 doesn't have this functionality & the only way of doing it within the core is to manually calculate & adjust the tax, which is quite risky.

You could log the requirement in the[ Product Development Collaboration |/community [original link is broken];forum, so it could be taken into consideration for future versions.

If it is a legal requirement, you could raise the issue with your local Solution Expert.

All the best,


Former Member
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HI James ,

As per your requirement ,

it is clear that in the Tax Calculation Formula :

You have three Input :

1. Item Cost

2. Item Sale Price

3. Tax Rate .

So out of these 3 input , according to me , only 2 inputs are available in the standard SAP.

so it is bit difficult to design the same.

So i suggest you to modify the Tax Amount Manually at the time of transaction.

You may use some FMS to calculate the same at transaction Level.

Hope it helps



Ashish Ranjan

Former Member
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Hi James Peel,

For this type of scenario when goods is sales you have to enter manualy tax figure at the time of Delivery.

There is no Standard Functionality in SAP B1.


Srujal Patel

Former Member
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As per your requirement you need to play with your taz code & formula.

there is no other way to do in standerd SAP B1


Mangesh Pagdhare.