A flat-rate farmer's appeal for a VAT refund of €3,982.93 has been rejected by the Tax Appeals Commission.

The farmer had appealed a Revenue Commissioners' decision from March this year to refuse the claim of a VAT refund of €3,982.93 relating to the purchase of an upgraded cluster flush system.

The farmer had initially applied for the VAT refund on November 10, 2025 specifically "for the supply and installation of a cluster flush system in an extended farm shed and newly constructed slurry tanks".

Revenue had rejected the claim because it stated that the system did not qualify for a VAT refund because "the claim was not related to the construction, extension, alteration, reconstruction of farm buildings or structures, land reclamation or fencing".

The farmer resubmitted the claim several times in November 2025 which Revenue continued to refuse the refund.

One month later the farmer once again resubmitted the claim with an updated description of the work with supporting photographs.

The farmer also informed Revenue that the milking machine was originally purchased in 2022 and the "flush system is an addition to the upgrade of the milking parlour”.

VAT

However in a final decision issued on March 2, 2026 Revenue's view was that "the system was deemed an addition to a milking machine and not eligible for a VAT refund".

The flat-rate farmer then appealed this decision to the Tax Appeals Commission.

The farmer submitted evidence to the Tax Appeals Commission that he added the 16-unit automatic cluster flushing system to his existing milking machine, located in his milking parlour.

The farmer detailed that this was done in order to ensure the well-being of his herd.

The Appeals Commissioner said that they appreciated that this was a priority for the farmer.

However the commissioner added that the installation of the cluster flushing system, though important to the farmer's dairy farming activities, "did not involve the construction or reconstruction of the farm building in which it was housed".

In the Appeals Commissioner’s view, the installation also did not involve the “alteration” of the farmer's dairy building.

The Tax Appeals Commission ultimately backed the Revenue Commissioners' decision from March this year to refuse the claim of a VAT refund of €3,982.93.