Tom Hayes (Tipperary South, Fine Gael)
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Question 75: To ask the Minister for Finance his views on a policy for the Revenue Commissioners of requiring an invoice for registering an imported used tractor purchased in Northern Ireland or in Great Britain; and if he will make a statement on the matter. [46442/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that an invoice for the purchase of the vehicle must be produced at the time of registration in the State of all imported means of transport, including used tractors purchased in Northern Ireland or Great Britain. The production of the invoice is necessary in order to ensure compliance with the Value-Added Tax law governing the importation of means of transport.

Tom Hayes (Tipperary South, Fine Gael)
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Question 76: To ask the Minister for Finance if the wear and tear allowances for agricultural vehicles will be increased from 12.5% to 40%, as is the case for taxis, in view of the fact that this would improve vehicles being used on farms and would encourage investment in the best technology for our agricultural sector; and if he will make a statement on the matter. [46443/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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A wear and tear allowance is available to persons who incur capital expenditure on the provision of machinery or plant for the purposes of a trade. For expenditure incurred on or after 4 December 2002, wear and tear allowances are granted on a straight-line basis over 8 years at the rate of 12.5 per cent per annum of the actual cost of the machinery or plant. This rate applies for both general machinery and plant and road vehicles. However, for taxis and cars provided for short-term hire to the public, the rate of the wear and tear allowance is 40% per annum on a reducing balance basis. This higher rate recognises the more rapid depreciation in the value of vehicles in use for these purposes.

Tom Hayes (Tipperary South, Fine Gael)
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Question 77: To ask the Minister for Finance if the negative impact of a VAT margin scheme on the agricultural vehicle sector has been analysed; the special arrangements that will be made for this sector; if the possible job losses brought about by introducing this scheme to the agricultural vehicle industry has been assessed. [46444/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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A VAT Margin Scheme is being introduced with effect from 1 January 2010 in respect of second-hand means of transport and agricultural machinery. The move to the Margin Scheme was announced on 14 September 2009.

Under the Margin Scheme, dealers will account for VAT on their profit margin, that is, on the difference between the cost of acquiring the means of transport and agricultural machinery and its reselling price. This will apply to all second-hand means of transport and agricultural machinery sold on or after 1 January 2010.

Currently, all EU Member States apply the Margin Scheme to second-hand vehicles with the exception of Ireland and Denmark. When the Margin Scheme was introduced under the EU VAT Directive in 1994, Ireland, following strong representations from the motor industry, negotiated a derogation in the form of the current Special Scheme, which is also provided for under the VAT Directive. Introducing the VAT Margin Scheme will bring Ireland into line with the vast majority of other Member States.

As regards any impact on the agricultural vehicle sector due to the introduction of the scheme, appropriate transitional arrangements are being introduced to take account of the fact that the move to the Margin Scheme will mean that dealers will no longer be able to reclaim or deduct the amount of VAT that under the Special Scheme is taken to be included in the price of the second-hand vehicle or agricultural machinery at the time of its acquisition by the dealer.

Pending the introduction of the Margin Scheme, second-hand vehicles or agricultural machinery acquired by dealers before 1 January 2010 and resold after 1 July 2009 will be taxed on their resale price. In effect this means that there will be no clawback of VAT in the case where such vehicles vehicle or agricultural machinery are sold at a loss. In addition, for second-hand vehicles or agricultural machinery purchased in the first six months of 2010, dealers will be entitled to claim limited VAT relief on the purchase of these second-hand vehicles or machinery at a reducing scale.