VAT Rate on 2nd Hand Goods

Board@Work

Apologies if posted in wrong forum.

I was wondering what is the VAT Rate should be applied to 2nd Hand goods . Is it 21% or 0%. My thinking is as it is 2nd Hand the VAT has already been paid on that good.

Thanks

antoinolachtnai

As I understand it, the same rate applies whether it was second-hand or not.

Did you buy this off someone who was vat registered? If they weren't there is some scope for adjustment (you only pay vat on the difference between the purchase and sales price).

Note: i am not an accountant. If you buy a lot of second hand goods from non-vat registered persons, you need an accountant conversant with retail vat.

Sleipnir

VAT is not payable on second hand goods. VAT is only paid once.

qwertz

This may very well be true, unfortunatley some shops still charge it.

Sleipnir wrote:

VAT is not payable on second hand goods. VAT is only paid once.

antoinolachtnai

Read http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1075793942 to see how it's accounted for in the North (on the difference). I think it is similar in the Republic, but I'm not sure.

a.

EKRIUQ

Board@Work wrote:

Apologies if posted in wrong forum.

I was wondering what is the VAT Rate should be applied to 2nd Hand goods . Is it 21% or 0%. My thinking is as it is 2nd Hand the VAT has already been paid on that good.

Thanks

What your wondering about is the 7th margin principle and mainly deals with antiques and older goods. Its up to the seller to charge it or not. Links at the bottom of page where you can read all about it,

7th margin principle

VAT rules in relation to the VAT treatment within the EU of second-hand
moveable goods, works of art, collectors items and antiques.

The principle feature of the Seventh Directive is a new system known as the "margin"
scheme which is intended to reduce the likelihood of double taxation in the
context of the sale of these goods. The relevant legislative changes required to
give effect to the 7th Directive Margin Scheme were contained in Section 126
Finance Act 1995 which inserted the new Section 10A into the VAT Act. The
new section had legal effect from 1/7/1995 although dealers were allowed to
implement the scheme on an administrative basis with effect from 1/1/95.

http://www.revenue.ie/services/foi/s16_2001/chap_10a.pdf

cavan_man2021

I was wondering has there been a change in vat on second hand furniture. I have seen auction houses selling tat and charging full vat on top of their charges.

Is this applicable for second stuff?

BorneTobyWilde

Commercial vehicles could change hand 10 times, and vat is payable every time, as with all things..machinery, parts,

antoinolachtnai

It depends whether you are selling to a commercial VAT-registered customer or a private non-registered consumer.