Why is there no VAT on your invoice for a refurbished phone? The margin scheme explained
You buy a refurbished phone and your invoice shows no VAT amount. Not an error — it's the margin scheme. Here's exactly how it works, including what it means for business customers.
Door The Phone Shopper
Gepubliceerd: 2026-08-15
It's a question we get regularly, especially from business customers: "I bought a refurbished phone, but there's no VAT on the invoice. Is that right?" The answer: yes, absolutely. It's called the margin scheme, and it's one of the least well-known but most carefully considered pieces of tax legislation around. In this article, we explain how it works — in plain English.
The problem the margin scheme solves
Imagine someone buys a new phone for €1,000. That price includes 21% VAT, which the retailer pays to the tax authorities. Two years later, that person sells their phone to a dealer, who refurbishes it and sells it on. If the full VAT rate were applied to that second sale, the government would be collecting VAT twice on the same device. Tax on tax, on a product for which VAT has already been paid.
That's why the margin scheme exists: when a dealer buys a used product from a private individual (who cannot charge VAT), the dealer only pays VAT on their margin — the difference between the purchase price and the selling price. Not on the full amount.
So why is there no VAT shown on the invoice?
This is the part that causes confusion. The law states that when selling margin goods, a seller must not show VAT as a separate amount on the invoice. VAT is still included in the price (on our margin, which we duly pay over), but you won't see a separate VAT line on your receipt or invoice. Instead, you'll see a note along the lines of "margin scheme: second-hand goods".
This isn't a trick on the retailer's part — it's a legal requirement. If a VAT amount were listed separately, a business buyer could reclaim it from the tax authorities, even though the full VAT amount was never paid in the first place. Hence the strict rule.
What does this mean for you as a private buyer?
In practice, only good things. Because we don't have to pay VAT on the full selling price, a refurbished device can be priced more competitively than it could be under the standard VAT regime. Your warranty and consumer rights are completely unaffected: with us, every refurbished device comes with a 2-year warranty (battery included) and a 30-day return window, margin scheme or not.
What about business buyers?
Here's the honest picture you need to know: you cannot reclaim VAT on a margin invoice. There's no VAT amount stated on it, and that's precisely what the law intends. For business owners, this can feel like a disadvantage — but do the maths first. A margin-scheme phone is typically considerably cheaper than the same model new. Always compare the net cost: the new price excluding reclaimable VAT versus the (lower) margin price with no deduction. Refurbished is often still the better deal for your business, and the full purchase price remains deductible as a business expense.
Worth knowing: not every refurbished phone automatically falls under the margin scheme. It depends on how the seller purchased the device. If a device was bought with a VAT invoice (from another business, for example), the standard VAT rules apply and VAT will appear on your invoice. If you're a business specifically looking for a device with reclaimable VAT, just ask — we'll see what we can do.
Is this only applicable in the Netherlands?
No — and that's perhaps the best proof that the system makes sense. The margin scheme originates from the European VAT Directive and applies across the entire EU. Whether you buy a used product from a dealer in the Netherlands, Germany, or Spain, the rules and the invoicing requirements are the same everywhere. In the Netherlands, the scheme is set out in the Wet op de omzetbelasting (Turnover Tax Act).
In summary
- No VAT amount on your invoice for a refurbished device? That's the margin scheme — legally required for second-hand goods purchased from private individuals.
- VAT is still paid, but only on the seller's margin. This prevents double taxation on the same device.
- Private buyers won't notice any difference, other than a sharper price.
- Business buyers cannot reclaim VAT, but will often still come out ahead financially. The purchase remains fully deductible as a business expense.
Have questions about your invoice, or interested in buying multiple devices for your business? Come and visit our store in Nijverdal (we've been here since 2009) or get in touch. And browse our current range of refurbished phones, every one checked by our own technicians through a 50-point inspection.
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