# how the Margin Scheme applies to second hand tractors?



## whiskey1 (11 Feb 2013)

Could someone explain to me  how the Margin Scheme applies to second hand tractors?

Thanks.


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## Joe_90 (11 Feb 2013)

http://www.revenue.ie/en/tax/vat/leaflets/margin-scheme-second-hand-goods.html
Have a read of this, basically where a dealer buys a tractor from an un registered farmer that dealer only accounts for VAT on the margin.


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## whiskey1 (11 Feb 2013)

Joe_90 said:


> http://www.revenue.ie/en/tax/vat/leaflets/margin-scheme-second-hand-goods.html
> Have a read of this, basically where a dealer buys a tractor from an un registered farmer that dealer only accounts for VAT on the margin.



Will the dealer ask me to pay the margin VAT or will the dealer absorb this?


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## mandelbrot (11 Feb 2013)

whiskey1 said:


> Will the dealer ask me to pay the margin VAT or will the dealer absorb this?


 
That's a strange question!

The dealer will get as much for the tractor as he can get.

He pays VAT on whatever margin he makes on it.


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## whiskey1 (11 Feb 2013)

mandelbrot said:


> That's a strange question!
> 
> The dealer will get as much for the tractor as he can get.
> 
> He pays VAT on whatever margin he makes on it.


 
Thanks for any replies to this post. I apologise if my question seems strange but this is not my field of expertise. 

I can take it so that I would not have to pay any VAT on this second hand tractor coming from an EU country if I were to register it in Ireland?


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## mandelbrot (11 Feb 2013)

whiskey1 said:


> Thanks for any replies to this post. I apologise if my question seems strange but this is not my field of expertise.
> 
> I can take it so that I would not have to pay any VAT on this second hand tractor coming from an EU country if I were to register it in Ireland?


 
And now you're asking a different question...!!

I'd say the answer to that is, "it depends".

What it depends on is the rules of the scheme as it operates in that other country.


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## whiskey1 (11 Feb 2013)

mandelbrot said:


> And now you're asking a different question...!!



Ah get lost.


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## mandelbrot (11 Feb 2013)

whiskey1 said:


> Ah get lost.


 
 Are you serious?! You've asked 2 very different questions...

First:


whiskey1 said:


> Will the dealer ask me to pay the margin VAT or will the dealer absorb this?


This would suggest you are just an ordinary unregistered farmer buying a tractor from a dealer in Ireland - if you don't say where the dealer is then it's reasonable to assume he's here too..! You give him whatever price you agree, and he then has to pay his VAT on whatever profit he's made. This was explained to you. (It's yes to both questions, because he absorbs the VAT to the extent that he pays it out of whatever you give him, but also you're the one whose money is used to pay the VAT, if you know what I mean... hence I said it's a strange question!)

Second:


whiskey1 said:


> I can take it so that I would not have to pay any VAT on this second hand tractor coming from an EU country if I were to register it in Ireland?


Now you've added an international dimension to your question, which makes it a very different and more complex question, as we don't know where you're buying it from and what rules pertain there.

So I wasn't being funny with you, you threw in a curveball, and made it impossible to give a straight answer. Best advice I can give you now is, go talk to a tax advisor (who understands VAT).


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## Joe_90 (11 Feb 2013)

whiskey1 said:


> Ah get lost.



You're welcome.


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