Margin VAT on second-hand cards (French art. 297 A): a practical guide
How margin VAT works for buying and reselling second-hand cards: calculation base, mandatory invoice wording, and automation.
By the Echo TCG team — software editor, working hand in hand with card shops.
A card shop buys cards from individuals and resells them. For these second-hand goods, France's margin VAT regime (article 297 A of the tax code) applies: VAT is charged on the margin made, not on the full selling price.
How margin VAT is calculated
The margin is the difference between the selling price and the purchase price of the card. VAT is extracted from that margin at the applicable rate: margin × 20 / 120 (for a 20% rate). If resold at a loss, the margin is zero and no VAT is due on that transaction.
- New card: standard 20% VAT on the selling price.
- Second-hand card (buyback): margin VAT = (sale − purchase) × 20/120.
- Second-hand graded cards: same margin logic.
The mandatory invoice wording
Sales under the margin scheme don't show VAT separately. The invoice must carry wording such as “VAT not deductible — margin scheme — art. 297 A” (art. 297 E). It's an obligation not to forget.
Why automate it
Manually tracking the purchase price of every bought-back card, then computing the margin at resale, is error-prone and time-consuming. Software that stores the purchase price on stock entry and automatically applies margin VAT at sale secures your accounting. Echo TCG does this natively and prints the 297 A wording on the relevant receipts and invoices.
This article is informational and does not replace your accountant's advice.
Frequently asked questions
- How do I calculate VAT on a second-hand card I bought back?
- VAT is charged on the margin, not the full price: margin × 20/120, i.e. (sale price − purchase price) × 20/120 for a 20% rate.
- What wording must appear on a margin-scheme invoice?
- VAT is not shown separately, and the invoice must carry wording such as "VAT not deductible — margin scheme — art. 297 A" (art. 297 E).
- Is VAT due if I resell a card at a loss?
- No. If resold at a loss, the margin is zero and no VAT is due on that transaction.
Echo TCG: the all-in-one software for card shops.