No vat adds on donedeal.

satstheway

My vat knowledge is limited so can someone explain how some tractor or machinery adds say they have no vat.

If a vat registered person buys a new machine and claims back surely they have to add vat on again to sell.

If a non vat registered person buys a new machine they have paid the vat and this is on the machine so it will be the same to the second buyer?

How can there be no vat

fanmanad

My understanding of that would be that No vat means that the person selling is more than likely not vat registered so cannot supply a vat invoice and therefore vat cannot be claimed.

Also think I was told before that where vat is not claimed on an item when bought new the vat is gone off that item but would need someone with more knowledge of it to confirm

Anynameilldo

It's to do with the margin scheme. Google it. Basically under normal rules when you buy from somebody unregistered you cannot claim back vat, but when you sell you have to pay vat on sale as you are vat registered. Margin scheme came in around 2010. Under margin scheme you only pay vat on the margin you make on something so if you purchase for 10000 and sell for 12000 the 2000 profit would include vat of 23% instead of paying it on 12000.