Article 31 - Value of Supply based on profit margin scheme

A. A Taxable Person may, subject to the Bureau’s approval, account for Tax based on the profit margin scheme in respect of the Supply of the following Goods:

1. Used moveable Goods, in the Kingdom, which are suitable for further use in their current state or after repair.

2. Works of art, artifacts or other items of scientific, historical or archaeological interest.

B. The provisions of Paragraph A of this Article shall apply provided that the Taxable Person makes a Supply of the above-mentioned Goods following their purchase from the following:

1. A Person not registered for Tax purposes in the Kingdom; or
2. A Taxable Person who is authorised to calculate Tax based on the profit margin; or
3. A Taxable Person who purchased Goods for business purposes, but was not entitled to refund Input Tax in respect of those Goods.

C. The profit margin consists of the difference between the selling price and the purchase price of the Good, and is considered to be inclusive of Tax.

D. The Taxable Person shall not deduct any Input Tax imposed on him or included in the value of the acquired used Goods.

E. The Taxable Person shall clearly indicate on the Tax Invoices he issues that Tax has been calculated based on the profit margin.

F. The Taxable Person shall keep records and documents showing details of Taxable Supplies made on the basis of the profit margin.