VAT on second hand machinery

WA320

Member
What is the best way of dealing with VAT on second hand machinery when not VAT registered? E.g if starting out on your own how do you get started buying equipment without being able to claim the VAT back? Or just better off paying it?
 

MF30

Well-Known Member
What is the best way of dealing with VAT on second hand machinery when not VAT registered? E.g if starting out on your own how do you get started buying equipment without being able to claim the VAT back? Or just better off paying it?
Unfortunately you will just have to pay the VAT if you are not prepared to register for VAT. Depends on what you are planning on working at. If going contracting etc you will probably be obliged to be registered but if a suckler farmer it might not be suitable to be VAT registered.
 

Mf 7715

Well-Known Member
What is the best way of dealing with VAT on second hand machinery when not VAT registered? E.g if starting out on your own how do you get started buying equipment without being able to claim the VAT back? Or just better off paying it?
Some secondhand machinery for sale in Ireland already has the vat paid so you can’t claim it back even if you’re vat registered.
 

towbar

Well-Known Member
Sometimes works to your advantage if your buying from non registered farmer a vat registered buyer won’t be interested.
 

eddie86

Well-Known Member
Some secondhand machinery for sale in Ireland already has the vat paid so you can’t claim it back even if you’re vat registered.
How does that vat margin scheme work?
If I buy something and claim the vat then sell it am I not liable to pay the vat on the sale? And in which case the next buyer can reclaim the vat they paid to me. Assuming registered.
So where does the no vat come into it?
 

towbar

Well-Known Member
I think Vat margin is where a vat registered buyer buys an item from non vat registered party and then sells it on. Vat is only payable by them on the increase in value.
 

Ó hÉidin

Well-Known Member
I think Vat margin is where a vat registered buyer buys an item from non vat registered party and then sells it on. Vat is only payable by them on the increase in value.
Thats as i understand it, and only effects dealers/traders really.

nothing stopping a man buying machinery now not vat reg’d and claiming it back after 12 months if its beneficial to get VAT reg’d. I think a lot of people looking in assume if you are vat reg’d you don’t pay the VAT, when the truth is you do, you just claim it back on your next return, which depending on the business could be as long as 12 months time if you are on an annual vat return.

only time you are really caught is if you are buying from abroad and have to pay the VAT, you cannot claim it back later.
 

towbar

Well-Known Member
Surely when buying abroad if in Europe you are zero rated or if charged you can submit a claim to that country directly. If outside Europe it should be zero vat anyway on goods for export and then at is payable at import point.
 

Ó hÉidin

Well-Known Member
Surely when buying abroad if in Europe you are zero rated or if charged you can submit a claim to that country directly. If outside Europe it should be zero vat anyway on goods for export and then at is payable at import point.
If buying inside the EU vendors do not charge VAT if you can provide a valid EU vat number. Perhaps you can submit a claim to that country retrospectively, never tried nor heard of anyone who tried. There is enough hassle with IE vat without having to go and make a claim in germany etc, that said as we are EU members, you are probably correct, i’d guess you could claim it back.

if outside the EU the vendor does not charge VAT as generally they get zero rate for export, but then you pay VAT along with import duties when it arrives in ROI. This could be claimed back as usual through revenue.
 

laoisfarmer

Well-Known Member
If buying inside the EU vendors do not charge VAT if you can provide a valid EU vat number. Perhaps you can submit a claim to that country retrospectively, never tried nor heard of anyone who tried. There is enough hassle with IE vat without having to go and make a claim in germany etc, that said as we are EU members, you are probably correct, i’d guess you could claim it back.

if outside the EU the vendor does not charge VAT as generally they get zero rate for export, but then you pay VAT along with import duties when it arrives in ROI. This could be claimed back as usual through revenue.
Is there not something about get vat zeroed in Germany, if it’s from a farmer you have to pay the vat , dealers can zero and there is also 2 rates of vat , thought I was told not to many German farmers are vat registered
 

Ó hÉidin

Well-Known Member
Is there not something about get vat zeroed in Germany, if it’s from a farmer you have to pay the vat , dealers can zero and there is also 2 rates of vat , thought I was told not to many German farmers are vat registered
You got me there. I only used germany as an example, i don’t know the ins and outs of their system specifically.
 
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