VAT at the Margin on Refurbished products, A bomb about to explode
In the last year, in the Italian refurbished market, we are witnessing an unprecedented dirty game carried out by both large and small distributors, as well as an exponential increase in new business openings that adopt the famous "art. 36" as a tax regime. or vat margin”.
This article allows all those who purchase products from private individuals to resell them by applying VAT only on the margin, i.e. the difference between purchase and sale, the problem is that many use it to completely reduce VAT bringing it to 0%, and all the their warehouse was the result of purchase from private individuals, thus being approximately 30% cheaper on the market than those who work legally by applying VAT at 22% without exposing the buyer to the risk of sanctions.
Obviously the art. 36 is a legal accounting regime, but it is impossible for sector players to create entire e-commerce sites where all the inventory offered is with VAT at the margin, even on new products, it is as if they declared to purchase millions of euros of goods exclusively from private individuals or coming only from private individuals.
For example, it is illegal to market an iPhone without the CE mark imported outside the Union by applying this regime if it has not been collected by a private individual in
EU with relative receipt and registration in your register, it is illegal to purchase lots with VAT in Italy or from the European Union from leasing companies or after a roll out and sell it on margin with art.36
We are not talking about borderline tricks, but about real illegality. This is all illegal.
We affirm this because we have been making purchases independently on Amazon for over 20 years, and lately we are seeing more and more e-commerce sites selling new iPhones but declared with an open box to justify that they are used products and therefore be able to sell them on a margin and not with VAT full at 22% or PCs sold from leasing companies that we know with VAT margin.
We are sure that this is a great time bomb that will soon explode. 🙏
Antonino Onofaro
CEO Founder: Computers Parts srl
