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.
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.