VAT marginal rules

Effects

I'm looking for some quick info on vat marginal rules.
I'm looking to buy a secodhand phone, and the vender says that vat marginal rules apply. Does this mean that there's no vat applied to the sale, so no vat to claim back?

Stratvs

VAT is applied, but only to the dealers profit margin.

https://www.revenue.ie/en/vat/vat-on-goods/schemes/margin-scheme/index.aspx

It covers scenarios where the goods are bought from largely unregistered people. If the dealer was liable for VAT on the full selling price but had no VAT input on the cost the VAT could in some cases exceed the profit. Under margin sales you don't get a VAT input claim on the purchase.

See 2 & 3 here
https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/goods-second-hand-goods.pdf

Effects

That makes sense, and is what I thought.
So even though vat is only paid by the seller on the difference in price, I'm still not allowed to reclaim the vat on that amount, correct?

Stratvs

Effects wrote: »

That makes sense, and is what I thought.
So even though vat is only paid by the seller on the difference in price, I'm still not allowed to reclaim the vat on that amount, correct?

Correct