Following a meeting with Revenue Commissioners this week, the Irish Creamery Milk Suppliers’ Association (ICMSA) has called for government intervention on the ongoing VAT issue for unregistered farmers.
While there has been no change in rules relating to VAT on behalf of Revenue, farmers have raised the issue of not receiving VAT for certain items, where they would have in the past.
Drennan said that the issue can be resolved if the government states “categorically that these items that were previously eligible will be re-instated”, and that if necessary the statutory instrument on this matter would be amended to “remove any doubt”.
At the meeting with commissioners, an agreement was reached whereby the ICMSA will supply further information in relation to the importance of bulk milk tanks to Revenue.
The new ICMSA president Denis Drennan said that bulk tanks are “an integral part of the milking unit and thus should be eligible for a VAT reclaim”.
“This whole episode has created huge financial pressures for individual farmers who were expecting to reclaim VAT on purchases, as well as halting investments on other farms due to the uncertainty introduced.
“The other factor that’s going largely unremarked is the major negative impact on supplying firms operating in every corner of rural Ireland,” Drennan said.
Government on VAT
Independent TD Mattie Mcgrath said he was contacted by numerous farmers from Tipperary, Waterford and all over the country about the ongoing issue and called on the Taoiseach in the Dáil for action.
He said farmers were dependent on getting the VAT back at 23% and that there had been been refusals for such items as meal bins, milk bulk tanks, automatic calf feeders, milking parlour equipment and automatic scrapers.
He said that the sudden change in interpretation by Revenue “is shocking”, and added that is “a breach of trust”.
Taoiseach Leo Varadkar replied to the deputy, and said that he would pass on the raised issue to Minister for Finance Michael McGrath for a direct response.
Agriland has contacted Minister McGrath on the matter and is awaiting a response.