I am advised by Revenue that the VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law must comply. In general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless they fall within categories of goods and services specified in the Directive, in respect of which Member States may apply a lower rate or exempt from VAT.
However, the Deputy may be interested to know about the margin scheme, which is used as a means of reducing the possibility of double taxation on the sale of second-hand goods. It operates by allowing taxable dealers who deal in margin scheme goods, pay VAT on the difference between the sale price and purchase price of certain second-hand goods. Broadly speaking, for the purpose of the margin scheme, second-hand goods are moveable goods which are suitable for use either as they are or after repair. The VAT rate which applies to a sale of goods under the margin scheme is, with some exceptions, the same rate of VAT which is normally applicable to the particular good. The scheme is optional however, so if a taxable dealer chooses not to operate the margin scheme, then normal VAT rules will apply.
Further information on the margin scheme can be found on the Revenue website.