Rural Life
Minister of Finance and Tánaiste Simon Harris had announced in Budget 2027 that the farmers flat rate VAT addition will be increased to 4.8%.
Agri-Business
An "anomaly" between the livestock VAT rate and the farmer flat-rate addition may be addressed in the next budget, Tánaiste Harris indicated.
The flat rate scheme "must remain simple, fair and fit for purpose", the Irish Co-operative Organisation Society has said.
The government is being urged to address a "VAT anomaly" that "financially penalises" non-VAT registered farmers selling livestock through marts.
Sinn Féin is calling for the rate of livestock VAT to be reduced to bring it in line with the flat-rate VAT addition for farmers.
Documents prepared for Budget 2027 have floated the idea of reducing the livestock vat rate in line with the farmer flat rate VAT addition.
For farmers who are not registered or required to register for Value-Added Tax (VAT), there is a scheme in place.
A TD has claimed that the reduction in the flat rate of VAT announced in Budget 2026 will cost farmers over €61 million this year.
Flat Rate Scheme
The Irish Co-operative Organisation Society (ICOS) has reiterated its call for the flat-rate addition to be amended.
Dairy
Despite prices holding steady in many co-ops for January supplies some farmers may see a reduction in their milk cheque this month.
Farmers should be aware of some key changes that are due to come in next year in relation to the flat-rate top-up and certain reliefs.
There is a "fear" that farmers might go to abattoirs instead of marts because of changes to the flat rate VAT scheme, the Seanad has heard.
Agri Politics
Minister Chambers has set out in Budget 2025 that the Flat Rate Scheme will be increased from the current 4.8% to 5.1% from January 1, 2025.
