Dealers asking if you are VAT registered

Milton09

Why do dealers ask if you are VAT registered when selling machinery? Would you be quoted a different price by the answer you give? Are dealers quoting a bit higher when they hear you are registered because they reckon you can go a bit higher on price as you will be getting the VAT back?

Anyone got an opinion on this?

k mac

Can you definitely claim vat back on tractors and machinery .I was told recently you can only claim on something that is fixed such as buildings, fencing materials and the likes.

st1979

If your a vat registered farmer you can and will claim back 21% so the machine is going to cost that farmer 21% less. The dealer does not put it on to take it off as he is going to be paid the vat bit anyway which he will then give to the vat man so it doesnt matter to him much.
But if the dealers from north and your vat registered he doesn't charge you vat as you cant reclaim from another state and you just pay the nett price

Casinoking

You get the VAT back on machinery alright, but it's a bit of a misconception to assume it goes straight into your pocket. You also have to pay VAT on all the goods and services you sell so over the long term one balances out against the other, unless you're buying a lot of machinery and not doing much work. Dealers usually ask if you're registered out of habit so they can quote you the price excluding VAT and make it sound less painful.