Used machinery and the VAT margin
Up until January 1, 2010, a special scheme applied to dealers who acquired agricultural machinery from unregistered farmers.Under that scheme, the dealer was entitled to claim back the residual amount of VAT on the purchase of machinery from an unregistered farmer. The dealer would then pay VAT on the full cost of the machine.
By way of example, take a machinery dealer who took a trade-in of a tractor, giving the farmer a value for the trade-in of €20,000.
