A new “guidance document” for VAT reclaims is on the way, according to the Irish Creamery and Milk Suppliers’ Association (ICMSA).
Revenue Commissioners confirmed to the ICMSA following a meeting that a revised guidance document on the reclaiming of VAT on certain items by unregistered farmers will be published during the month of May.
President of the ICMSA, Denis Drennan said that “continuing uncertainty” on VAT reclaims has to be resolved.
“Revenue commissioners confirmed that VAT can be reclaimed on silage barriers, water troughs that have been plumbed, cubicle mats that are bolted to the floor, meal bins above a specified size, in-parlour feeding systems, bulk tanks and milking machines where they are part of a construction or renovation project of a specific shed,” Drennan said.
In relation to meal bins, ICMSA asked Revenue to review the specified size.
The ICMSA also asked Revenue to review the exclusion of automatic calf feeders and robotic scrapers.
The association invited officials to visit a farm to see the importance of the equipment and confirm that it is an “integral part” of a shed.
Drennan said that Revenue had also stated how important it was for the processing of any claim that the farmer give a full and proper explanation for the investment being carried out.
E.g., Revenue stated that the claim for the renovation or construction receipt should be submitted together with the bulk tank receipt.
“We explained to Revenue that such investments may in some cases take place over a number of years for cashflow reasons and Revenue agreed to consider this issue as part of their revised guidance,” Drennan said.
“There has been huge concern on this matter over recent months and we are satisfied that Revenue took our points ‘on board’ and that, when published, the new guidance document when published will clear up many of the issues of concern.
“There may well be outstanding issues, including calf feeders, but Revenue have agreed that where ICMSA members had specific issues, that engagement could take place to examine specific cases,” Drennan added.