Vat on a trade in.

fiatagri8090

I am vat registered and I wish to trade in a piece of equipment that I purchased prior to vat registration. Am I required to return the vat on the piece of equipment that I am trading in?

paul71

Yes, Vatable product sold by a VAT registered person. Its standard on trade ins of commercial vehicles put applies to any trade in.

BronsonTB

Not sure if this applies to item in question?

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

fiatagri8090

I am a farmer and it is a piece of agricultural machinery that I purchased a number of years prior to registration.

paul71

https://www.boards.ie/discussion/comment/119650803#Comment_119650803

The margin scheme is the VAT input allowance a VAT registered trader is permitted when buying from a non-VAT registered person, does not apply to the above.

paul71

https://www.boards.ie/discussion/comment/119650892#Comment_119650892

Thats more complex, I will pass on that, wait for someone who has more experience in farm accounts, as there is also a capital allowance/balance charge implication.

Xander10

..........