Margin or VAT on refurbished hardware

All refurbished products we offer are, unless otherwise indicated, inclusive of 21@% VAT. With your order you will receive an invoice with a separate VAT mention. 

European Margin scheme for refurbished products  

Refurbished products can also be offered under the so-called European margin scheme. This applies to products that were originally purchased from a private person without VAT, because a private person cannot and may not charge VAT.

Because we work with several companies that specialize in buying up and refurbishing, we largely work with VAT products, but we also offer margin products. Margin products have a lower price, making them extra interesting for private purchases. For businesses, the products with VAT are more interesting because the VAT can be reclaimed. You recognize a margin product by the mention on the product page.  

From VAT to margin product

If a new appliance is delivered by the manufacturer and/or supplier, it is always a VAT-bearing product. If an individual or non-profit organization buys this product new, the VAT is remitted by the manufacturer/supplier and cannot be recovered. The product purchased by a private individual has then become a margin product.

Business purchase

When a business purchases an IT product, it is included in the company's accounts. The VAT is settled and when the IT product is sold to another company, the remaining VAT amount is paid back to the tax authorities. Through this transaction, the product remains a VAT product. If another business owner wants to purchase this product, it can be offset on a subsequent purchase. If this product is put up for sale as second-hand/used/refurbished then this product falls into the VAT product category. If the product is purchased by a private individual, this is and remains a margin product. The purchased product can then no longer be converted to a VAT product.

Private purchase

As a private purchaser, it is not important to compare the two financial options. This is because there is no possibility to reclaim any VAT on the product from the tax authorities. When looking for a suitable product at IT-Refurbished, as a private individual you can purchase either a margin product or a VAT product.

Margin product as a business purchase

It becomes different when you want to purchase a margin product on a business basis. A margin product does not include the VAT benefit.Look closely at the price differences, margin products can seem 10% cheaper but if there is no 21% VAT in the price you have an inverse difference of 11% in this example.At Swoop we indicate on the product page whether it is a margin or VAT product.