Seamus Kirk
Ceist:79 Mr. Kirk asked the Minister for Finance the procedures for the importation of new and second-hand farm machinery in Ireland; and the rate of VAT and other duties that are payable on these items. [1397/95]
Written Answers. - Farm Machinery Importation Duties.
It is assumed that, in addition to farm machinery imported from non-EU countries, the Deputy would also wish to know the position relating to machinery purchased from other EU member states.
No special arrangements exist for the importation from outside the EU of new and second-hand farm machinery. The normal customs procedures apply, with customs duty of between 2.8 per cent and 6.8 per cent, depending on the type of farm machinery involved, and VAT at 21 per cent being chargeable at point of entry.
When farm machinery is sourced in other member states, the issue of EU customs duty does not, of course, arise. In the case of purchases of farm machinery by VAT-registered persons in the State from VAT-registered persons in other EU member states, the purchaser is required to account for VAT in the State at 21 per cent under the postponed accounting system for intra-Community acquisitions. VAT is not chargeable in the member state of origin of the goods.
Where unregistered persons in the State purchase farm machinery from VAT-registered persons in other member states, VAT is chargeable in the member state of purchase at the appropriate rate. However, it should be noted that unregistered farmers who acquire farm machinery or other goods from other EU countries in excess of £32,000 per annum are obliged to register and account for Irish VAT at 21 per cent in respect of these acquisitions.
The VAT rules outlined above apply generally to purchases made in other member states of farm machinery whether new or second-hand. However, in the case of second-hand machinery, transactions between member states may occasionally, for example, depending on the VAT status of the vendor, result in a different tax arrangement. For this reason, it is advisable that persons intending to purchase second-hand machinery in another member state should first check the position with the Office of the Revenue Commissioners.
Vehicle Registration Tax (VRT) of £40 is also payable in respect of tractors, combine harvesters and similar vehicular type farm machinery.