Revenue meet ICMSA on VAT reclaims – New ‘Guidance Document’ to follow setting out list of equipment and procedures.

Speaking following a further meeting with the Revenue Commissioners in relation to the reclaiming of VAT on certain items by unregistered farmers and the well-publicised difficulties being experienced by farmers over the last year on this matter, the President of ICMSA, Denis Drennan, said that the Revenue Commissioners have confirmed to ICMSA that they will issue a revised guidance document during the month of May that they hope will clarify the situation for those farmers.

Observing that ICMSA had been inundated with calls from very concerned members who had invested on their farms on the basis that VAT would be reclaimable on certain items, only to find themselves being told that that was not the case, Mr. Drennan said that the continuing uncertainty on this matter had to be resolved and ICMSA had actively engaged with the Revenue Commissioners to establish and identify what items of equipment were eligible for VAT reclaims and in what circumstances.

“At yesterday’s meeting, the Revenue Commissioners confirmed that VAT can be reclaimed on silage barriers, water troughs that have been plumbed, cubicle mats that are bolted to the floor, meal bins above a specified size, in-parlour feeding systems, bulk tanks and milking machines where they are part of a construction or renovation project of a specific shed. In relation to meal bins, ICMSA asked the Revenue Commissioners to review the specified size which – at 10 tonne – ICMSA believes to be too high and Revenue have agreed to review this matter”, said Mr. Drennan.

Noting ICMSA’s disappointment that automatic calf feeders and robotic scrapers are still excluded, Mr. Drennan said they had asked Revenue to review this matter and invited the officials to visit a farm to see the importance of this equipment and confirm that it is an integral part of a shed.

He said that Revenue had also stated how important it was for the processing of any claim that the farmer give a full and proper explanation for the investment being carried out and that the claim for the renovation/construction receipt should be submitted together with the bulk tank receipt, for example.  

“We explained to Revenue that such investments may in some cases take place over a number of years for cashflow reasons and Revenue agreed to consider this issue as part of their revised guidance”, said Mr. Drennan.

“There has been huge concern on this matter over recent months and we are satisfied that Revenue took our points ‘on board’ and that, when published, the new guidance document when published will clear up many of the issues of concern. There may well be outstanding issues, including calf feeders, but Revenue have agreed that where ICMSA members had specific issues, that engagement could take place to examine specific cases”, said Mr. Drennan.

Ends         23 April 2024

Denis Drennan, 086-8389401

President, ICMSA.

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Cathal MacCarthy, 087-6168758

ICMSA Press Office