Fianna Fáil TD and chairperson of the Oireachtas Agriculture Committee, Jackie Cahill is calling on the Minister for Finance Michael McGrath to amend the legislation for VAT rebates.
The deputy has tabled a motion for discussion on the issue of unregistered farmers not receiving VAT refunds at the Fianna Fáil Parliamentary Party meeting next week.
Revenue has stated that there is no change in regulations surrounding VAT refunds.
However farmers have experienced a change in interpretation from Revenue over what qualifies for a refund.
It has been claimed that some farmers and manufacturers have been left with “large loans” because of the unclear position in relation to the issue.
Deputy Cahill said that the call is to: “Amend the relevant legislation, to make it clear to the Revenue Commissioners that the original interpretation of the law governing VAT rebates should still be followed.”
VAT rebates
Deputy Cahill said that Revenue followed “one single interpretation” of how VAT for unregistered farmers operated for over 50 years.
“I appreciate that the Revenue Commissioners are independent, however, taking such a drastic change in interpretation of existing legislation is tantamount to an entire policy change.
“That responsibility lies with our government and parliament,” Deputy Cahill said.
“I look forward to bringing this motion to our meeting next week and I am strongly encouraged by all the support I have received to date from my Fianna Fáil colleagues on this issue,” he added.
Minister McGrath said that each claim is assessed on its own merits.
“Where the installation of feed bins, milk bulk tanks, automatic calf feeders, milking parlour equipment, and automatic scrapers requires the alteration or reconstruction of a farm building or structure, the corresponding outlay has been allowed in certain circumstances,” Minister McGrath said.
Revenue has been invited to appear before the Oireachtas Committee on Agriculture, Food and the Marine to discuss the issue.