Words / M / Law

margin scheme

noun

C2CEFR level
85/100Rarity: very rare
TechnicalRegister

A VAT method charging tax only on a dealer's profit margin rather than the full sale price of eligible second-hand goods.

The gallery accounts under the margin scheme, so VAT falls only on its mark-up.

Topic: Tax law in Legal English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More law words: Tax law