Govt Must Remove 23% VAT Rate on Animal Vaccines

IFA Animal Health Chair David Hall has called on the Government to reduce VAT on animal vaccines to zero, in next Tuesday’s Budget. This would bring it into line with the VAT rate on oral vaccines. 

The majority of veterinary vaccines for farm animals are injectables and incur the 23% VAT rate as a result.

“IFA has campaigned for this change for years. Farmers spend over €40m annually on vaccines, so the current VAT rate adds almost €10m to the cost of these important preventative medicines.”

“Vaccination plays a central role in protecting animal health. The Government’s iNAP strategy sets out its commitment to tackling antimicrobial resistance and supporting farmers with the necessary tools to deliver on this. Farmers have engaged proactively on AMR and must be supported by reducing their costs,” he said.

“The Department of Agriculture committed to introducing a zero rate from 2025, yet farmers are still paying 23%. That delay is difficult to justify when the EU VAT Directive allows the Government to apply a zero rate and the move would be cost neutral for the Exchequer,” he said.

“Removing VAT would be a practical step that supports farmers in preventing disease, reduces antibiotic use and in the process saves farmers in the region of €10m annually.”