Hi guys,
This is not massively clear on the revenue website but I am wondering what is the situation in regards to vat on second hand goods.
For example - a company deals in both new and used musical instruments. They allow customers to trade in for want of a better word there instruments. So instead of paying €900 for a new trumpet they pay €600 and give their old basic one which they originally bought at the same company in as part exchange. Obviously assuming all thresholds are reached etc there is vat charged on the new trumpet and there was originally vat charged on the now second hand trumpet at the time of purchase. The customer trading it in is not vat registered etc.
Subsequently that €300 trumpet is to be sold in the store. Is this subject to VAT again or shoudl this be zero rated as duty has already been paid on the goods at the original purchase ?
This is not massively clear on the revenue website but I am wondering what is the situation in regards to vat on second hand goods.
For example - a company deals in both new and used musical instruments. They allow customers to trade in for want of a better word there instruments. So instead of paying €900 for a new trumpet they pay €600 and give their old basic one which they originally bought at the same company in as part exchange. Obviously assuming all thresholds are reached etc there is vat charged on the new trumpet and there was originally vat charged on the now second hand trumpet at the time of purchase. The customer trading it in is not vat registered etc.
Subsequently that €300 trumpet is to be sold in the store. Is this subject to VAT again or shoudl this be zero rated as duty has already been paid on the goods at the original purchase ?