Revenue Commissioners have paid a visit to the farm of the former deputy president of the Irish Farmers’ Association (IFA) to see in person the items which farmers believe should be eligible for a VAT refund.
During the visit to Brian Rushe’s farm in Co. Kildare, Revenue Commissioners heard that items including calf feeders, water piping troughs, cubicle slat mats and bulk tanks are “intrinsic” to daily farming operations and should therefore “continue to qualify for a VAT refund”.
Farming organisations have been at loggerheads with Revenue over the issue of VAT refunds for certain items of equipment which previously they had been allowed to claim on.
VAT
Last week members of the Joint Oireachtas Committee on Agriculture clashed with Revenue officials over the issue of VAT refunds to unregistered farmers.
The Revenue representatives said their interpretation of the VAT refund order had not changed.
Unregistered farmers have been able to claim back VAT on certain “qualifying expenditure” under the Refund Order since 1972.
Representatives from the Office of the Revenue Commissioners told the joint committee that VAT refunds have been allowed where farming equipment is “considered a fixture”.
But the cathaoirleach of the committee Deputy Jackie Cahill, placed on the official Oireachtas record that he was “disappointed” with the answers given by the Revenue representatives.
“It’s crystal clear to us as politicians that the policy of the Revenue changed. You’ve categorically denied that that happened. You’re perfectly entitled to do that.
“Calf feeders were refundable without any question up to August of last year and now calf feeders are being refused. That’s simple facts and that has to be a change in interpretation,” he added.
IFA
The IFA, who had previously met directly with Revenue Commissioners in February, had invited some of their representatives to visit a farm to see in person the items of equipment which farmers believe should be included for VAT refunds.
Bill O’Keeffe said that Revenue representatives were personally able to view these items on its former deputy president’s farm during the visit.
He added: “Revenue have consistently said that they not changed their interpretation of the current Statutory Instrument that governs the exemption.
“If that is the case, we believe that the items we focused upon during the farm visit should continue to be included for VAT refunds.
““Clarity would be welcome but it must be consistent with what has gone before”.
Revenue has confirmed that it intends to publish updated VAT guidance in May.