VAT Question

geoff2915

I am a retailer and will be selling some second hand items in the new year. This would include furniture/curtains etc. Is VAT chargeable when selling these?

They will be sourced from the public (who won't charge me VAT) and I will sell them on for them, taking a cut.

EKRIUQ

You pay VAT on your profit, not on the of the total goods, buy something for €100 sell for €150 pay vat on the €50.

Peterdalkey

For rules this link refers http://www.revenue.ie/en/tax/vat/leaflets/margin-scheme-second-hand-goods.html

thecommander

EKRIUQ wrote: »

You pay VAT on your profit, not on the of the total goods, buy something for €100 sell for €150 pay vat on the €50.

Nonsense. That's not how VAT works.

Peterdalkey

thecommander wrote: »

Nonsense. That's not how VAT works.

Read link in post 3!

The Dagda

Peterdalkey wrote: »

Read link in post 3!

The margin scheme applies to very specific items, it's most likely irrelevant to the OP.

Peterdalkey

The Dagda wrote: »

The margin scheme applies to very specific items, it's most likely irrelevant to the OP.

VAT margin scheme applies to a wide variety of used goods as directed by the following EU Directive http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/2nd_hand_goods/index_en.htm

If the OP wishes to clarify specific details a quick call to Revenue will confirm

The Dagda

Peterdalkey wrote: »

VAT margin scheme applies to a wide variety of used goods as directed by the following EU Directive http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/2nd_hand_goods/index_en.htm

If the OP wishes to clarify specific details a quick call to Revenue will confirm

In your link above, it says;

In principle, it is the normal VAT arrangements which apply to 2nd hand goods. This means that the amount on which VAT is charged is the full consideration which the dealer has received from the customer less the amount of VAT relating to the consideration.

However, the margin scheme can be used by a taxable dealer in the following special circumstances:

I think you should have simply advised the OP to contact Revenue first, without confusing things with mention of the Margin Scheme.

Peterdalkey

Rather than critiquing my post, you should have checked your own ill- considered and blatantly inaccurate post.

thecommander

Peterdalkey wrote: »

Read link in post 3!

I stand corrected. It works in some circumstances like that, but the majority of cases it doesn't.

Peterdalkey

thecommander wrote: »

I stand corrected. It works in some circumstances like that, but the majority of cases it doesn't.

As the EU Directive refers to dealing with the issue of multi charging of VAT in relation to used goods sales by VAT registered traders, it is not surprising that the range of items eligible under the margin scheme is very extensive.

tonyVito

are you selling as a person or as a company?