Upon the recent confusion surrounding VAT rules for unregistered farmers, the Department of Finance has advised farmers that wish to appeal a refund order decision, to do so directly through the Tax Appeals Commission.
The commission is an independent statutory body hearing, and determines appeals against assessments and decisions of the revenue commissioners.
Farmers can appeal against most Revenue assessments of the amount of tax or duty to be paid.
According to the Tax Appeals Commission, most types of Revenue decisions can be appealed.
However, farmers can only do so when they have received a final notice of assessment or a letter communicating the final decision from Revenue.
Many farmers have made investments with expectation of receiving VAT back, however are now finding out that they do not qualify.
According to the appeals commission, those appealing should consider other options first, including asking Revenue to look at the assessment again.
There has been no change in rules relating to VAT on behalf of Revenue, but rather a change in interpretation reported by farmers and farm organisation.
The Irish Creamery Milk Suppliers’ Association (ICMSA) has made an agreement to supply further information in relation to the importance of certain agricultural inputs to Revenue, to create a better understanding for the ongoing issue.
The Irish Farmers Association (IFA) is also engaging with Revenue on the issue.
The Department of Finance also advised that if farmers have a query, they can contact Revenue through any of its online services, namely ROS or myAccount.
The department stated that VAT treatment of goods and services is subject to EU VAT law, which Irish law must comply to.
The current VAT laws allow for unregistered farmers to claim a refund on VAT for the following:
- The construction, extension, alteration or reconstruction of farm buildings or structures;
- Fencing, draining and reclamation of farmland;
- Construction and/or installation of qualifying equipment for the purpose of micro-generation of electricity for use in a farm business.
According to Revenue, each case will be considered on a individual basis.