VAT Query Agri contractor

A

April93

New Member
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My dad is an agricultural contractor who registered for VAT last year.
He is buying a new baler and trading in his old one.
My queries are:

1) I understand he can claim the VAT on the new baler in full?

2) In relation to the sale of the old baler, does he have to charge VAT?
He would have purchased this prior to VAT registration and so VAT was not reclaimed.
 
1) yes, he can claim the VAT
2) VAT is generally not charged on used items - who is he selling it to?
 
He is trading it in for the new baler.

If VAT is not charged on used items can he claim it on the new baler? It's not brand new, it's a 2020 used model.

The seller has said he will be providing a VAT invoice.
 
Vat on second hand equipment seems to charged on the seller's margin - search the Revenue website for more info

If he is Vat registered, then Vat on purchases is counted as input Vat and can be offset against Vat on Sales
 
VAT is definitely charged on used items. If you're registered for VAT, you must charge VAT on anything you sell in the course of business. I don't think the margin scheme would apply here either.
 
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