Recaliming VAT on Equipment

[tred]

folks,
My dad is a small farmer in west of ireland. Hes not VAT registered, however he is going to shortly need to consider purchasing a new Tractor which is expensive even for the cheapest one.
is there any way he can reclaim VAT back on this purchase??? under any scheme?

thanking you.

 

[BrenG]

AFAIK there is some kind of special scheme for VAT in relation to farmers. I have not been involved in this area for some time so would recomend you get more expert advice. A call to the VAT office or to a farming accountant in the area should quickly give you the up to date position

 

[ubiquitous]

is there any way he can reclaim VAT back on this purchase??? under any scheme?

In theory, he can register for VAT, but I would not recommend this as an option - too much paperwork, VAT liabilities arising everytime he sells livestock and certain produce, and the necessity to repay the entire VAT saving to Revenue if/when he wants to deregister from VAT.

AFAIK there is some kind of special scheme for VAT in relation to farmers.

This applies only to VAT reclaims on additions to farm buildings, purchase of fixed equipment (eg some milk tanks), fencing and reclamation and drainage of land. It does not apply to mobile equipment such as tractors. For more info try "Revenue VAT58" on google.ie

ps If he buys a tractor second-hand from another farmer, as opposed to from a dealer, there is unlikely to be any VAT charge.

 

[Joe1234]

VAT is not refundable on a tractor. The revenue do check VAT58 forms quite carefully.

 

[tred]

VAT is not refundable on a tractor. The revenue do check VAT58 forms quite carefully.

Thanks all, just wondering was there some scheme out there that we werent aware off.

Cheers.