The profit margin scheme enables a taxable person to calculate VAT on eligible supplies on the basis of the profit margin earned, instead of the original selling price. It can be claimed on (1) second-hand goods, (2) antiques (more than 50 years old), (3) collectors such as stamps, coins etc. A taxable person may apply the profit margin scheme on the following conditions (1) Purchase of goods from either an unregistered person, (2) Purchase of goods from a taxable person who already applied on the same goods profit margin scheme.