- Messages
- 8,012
- Name
- David
- Edit My Images
- Yes
That's an interesting explanation of VAT on secondhand items, and explains why it is rarely worth buying 2nd hand if you are VAT registered.
Stewart, do you know if the VAT-registered induividual buying something from a dealer on the margin scheme can claim back the VAT on the margin?
i was under the impression (perhaps wrongly) that some secondhand dealers actually sell on commission (eg Ffordes???) in which case, from what you say, there might be a case for the VAT registered individual buying from them.
You probably didn't want any further questions on this subject but it would clear these issues up for me if you could!
You can't claim VAT back when the item is sold to you on the margin scheme - (unfortunately) - and as a VAT registered entity it is often cost effective to buy new (especially if you negotiate some sort of discount!)