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VAT when buying from a breakers in the North

  • 29-08-2021 11:24am
    Registered Users Posts: 206 ✭✭

    I'm looking to buy some used car parts from a breakers in the north that they're going to deliver to me. They said I don't have to pay VAT if I have a VAT number I can give them (which I don't). I didn't think I had to pay VAT on 2nd hand goods.

    What's the best way of going about this?


  • Registered Users Posts: 10,163 ✭✭✭✭Jim_Hodge

    There's VAT due. It's based on value added - seller's profit margin, overheads, delivery charge etc.

  • Registered Users Posts: 3,817 ✭✭✭Darc19

    Northern Ireland is in the EU from a trade point of view.

    If you are vat registered you don't pay the vat but you do account for it in your returns.

    If you are not vat registered, UK vat of 20% applies.

    This is only for trade with northern Ireland.

    Vat on secondhand goods has various rules. But generally if buying from a business that has bought the item in a business to business transaction, vat is due.

    There's also a "margin" vat rule. So if a business buys an item from a private individual for €80 and sells it for €104.60, vat is only on the amount over €80. In this case it's €4.60 (€20 @23%). I think it's up to the trader to decide whether to account this way.