Revenue meet ICMSA on VAT reclaims

Speaking following a further meeting with the Revenue Commissioners in relation to the reclaiming of VAT on certain items by unregistered farmers and the well-publicised difficulties being experienced by farmers over the last year on this matter, the President of ICMSA, Denis Drennan, said that the Revenue Commissioners have confirmed to ICMSA that they will issue a revised guidance document during the month of May. This is expected to clarify the situation for those farmers.

Observing that ICMSA had been inundated with calls from concerned members who had invested on their farms on the basis that VAT would be reclaimable on certain items, Mr Drennan said that the continuing uncertainty on this matter had to be resolved.

At the meeting, Mr Drennan said the Revenue Commissioners had 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”.

In relation to meal bins, ICMSA asked the Revenue Commissioners to review the specified size which, at 10 tonnes, it believes to be too high.

Automatic calf feeders and robotic scrapers are still excluded and ICMSA has asked Revenue to review this matter, inviting officials to visit a farm to see the importance of this equipment.

He added that Revenue had also stated how important it was for the processing of any claim that the farmer give a full explanation for the investment being carried out and that the claim for the renovation/ construction receipt should be submitted together with the bulk tank receipt, for example.

“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,” said Mr. Drennan. “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.”