Cropped 22 Jan 2024

VAT Reclaim Guidance From Revenue Commissioners Does Not Go Far Enough.  –  ICMSA.

Commenting on the guidance document published today by the Revenue Commissioners in relation to farmers reclaiming VAT on certain investment items, the President of ICMSA, Mr. Denis Drennan, said that while the guidance document provided clarity on a number of issues, the document did not go far enough and it is hugely disappointing that a number of critical items remain non VAT refundable.

In particular, it is very hard to understand why automatic calf feeders and robotic scrapers are not eligible for a VAT refund.   The reality, Mr. Drennan said, is that these are permanent structures bolted to the ground and the Revenue deem them ineligible while other items which are mobile can be claimed by other sectors.   There is a serious contradiction in Revenue’s approach where some items that are fixed are ineligible while other mobile items can be reclaimed.   Calf feeders and robotic scrapers are two pieces of modern equipment to improve labour efficiency and animal welfare and it is very disappointing that they remain ineligible.

In relation to internal bulk tanks, Mr. Drennan said, that while it is clear that where the installation of a bulk tank requires construction/alteration of a building, the VAT is reclaimable, a level of uncertainty remains for farmers who are making a very significant investment in a bulk tank and the Revenue should be clearer of what is required to ensure the VAT can be reclaimed on a new bulk tank.   The reclaiming of VAT on a bulk tank can be the deciding factor on whether the farmer makes the investment or not and given this, the Revenue should remove this uncertainty by providing clearer guidance.    In relation to meal bins, Mr. Drennan called on Revenue to clarify that there is no minimum size to a meal bin bolted to a concrete base in terms of reclaiming VAT as previously, Revenue had a 10 tonne limit.   ICMSA raised this matter with Revenue and we would hope that Revenue have dropped the minimum size but it is not fully clear from the guidance document.

Concluding, Mr. Drennan said, that while progress has been made in a number of areas, the issue of automatic calf feeders and robotic scrapers need to be addressed while further clarity in relation to bulk milk tanks and meal bins is required so that farmers can make informed decisions on investments.

ENDS     4 June 2024

Denis Drennan is at (086) 8389401.

ICMSA Head Office: (061) 314677.