IFA President Francie Gorman led a delegation to meet the Revenue Commissioners this week on the issue of VAT rebates to farmers who have carried out essential works on their farms.
Under VAT 58 rules, farmers who aren’t registered for VAT, can reclaim VAT on certain capital expenditure items.
Issues have arisen in recent months whereby some items, which farmers had previously received refunds on, are no longer eligible.
Francie Gorman said IFA laid out the importance of these refunds for farms to enable them to make investments in their farms.
“After engagement on this issue, Revenue officials confirmed to IFA that refunds will be available on drafting gates, hydraulic scrapers and new build milking parlours. It was also outlined by Revenue that VAT refunds are not applicable on heat and health monitoring systems or slurry bags.”
IFA Farm Business Chair Bill O Keeffe said, “there are still a number of items that IFA believe a VAT refund should be allowed. It was agreed at this meeting that IFA will make a further submission on these items. Revenue has committed to issuing a detailed guidance document to help bring clarity to the matter after these submissions are considered”.
The IFA President concluded by saying “We will continue to work on this vital issue for agriculture and look forward to further engagement with Revenue in order to see a satisfactory outcome for all farmers”.