As of September 1, this year, the Defective Concrete Products Levy (DCPL) applies to the first sale of certain concrete products.
The DCPL applies at the rate of 5% and is not chargeable on any resales of that concrete product.
Concrete products within the scope of the levy are defined by Revenue as:
- Concrete that is ready to pour for use other than in precast products, and which is liable to VAT at the rate of 13.5%;
- Products that contain concrete, which are required to comply with the following Harmonised European Standards. This includes concrete blocks.
The person responsible for paying levy depends on whether the products are purchased within the state or outside the state.
Revenue explained to Agriland that when the supplier is in the state, it is the supplier who is the chargeable person for the purposes of the DCPL. This basically means the supplier will charge the levy on the sale of relevant products to its customers.
However, if bought outside of the Republic of Ireland, then the buyer is responsible for paying the levy.
So farmers and agri-contractors should be aware that if they import certain concrete products, including from Northern Ireland, the levy applies to them.
Revenue has also advised that if a farmer makes multiple orders for concrete from Northern Ireland they are liable for the new levy on each order.
Paying the concrete levy
The levy operates on a self-assessment basis via Revenue. Generally, a chargeable person must submit returns and pay the levy to Revenue on a six monthly (bi-annual) basis.
The first accounting period for the levy is September 1, 2023 to December 31, 2023.
Subsequent accounting periods are six-monthly periods, such as: January 1, 2024 to June 30, 2024, and then July 1, 2024 to December 31, 2024.
The chargeable person must submit a return and pay the levy to Revenue within 23 days of the end of an accounting period.
It is the responsibility of the buyer to register with Revenue for the DCPL prior to their first supply of a concrete product within the scope of the levy.
The buyer must submit DCPL returns to Revenue and pay any amount due.
According to Revenue, the quickest way to pay any outstanding amounts is to submit payment online through the Revenue office.
Precast products
A limited number of precast products had originally been listed as being within scope of the levy when it was first announced in October 2022.
Following further consideration, these precast products were removed prior to the publication of what became the Finance Act 2022. However, the pouring concrete element which forms a constituent of these products remained within the scope of the levy.
In the latest development yesterday (Wednesday, September 6), Minister for Finance Michael McGrath brought forward an amendment in the forthcoming Finance Bill to exclude the value of pouring concrete used in precast products from the scope of the levy.
The minister said that this change will come into effect from January 1, 2024.
A refund scheme will apply for the rest of this year for levies already paid on pouring concrete for precast products.