Revenue to issue new guidance on reclaiming Vat for unregistered farmers, says ICMSA
“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."
Revenue will issue a revised guidance document next month that they hope will clarify matters related to reclaiming Vat on certain items by unregistered farmers, the ICMSA has said.
The association said it has been inundated with calls from "very concerned" members who had invested on their farms on the basis that Vat would be reclaimable on certain items, only to find themselves being told that that was not the case.
ICMSA President, Denis Drennan said that the continuing uncertainty on this matter had to be resolved, adding that the group had actively engaged with the Revenue Commissioners to establish and identify what equipment items were eligible for Vat reclaims and in what circumstances.
“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," said Mr Drennan.
"In relation to meal bins, ICMSA asked the Revenue Commissioners to review the specified size which - at 10 tonne - ICMSA believes to be too high and Revenue have agreed to review this matter”, said Mr Drennan.
Noting ICMSA’s disappointment that automatic calf feeders and robotic scrapers are still excluded, Mr Drennan said they had asked Revenue to review this matter and invited the officials to visit a farm to see the importance of this equipment and confirm that it is "an integral part of a shed."
He said that Revenue also stated how important it was for the processing of any claim that the farmer gives a full and proper explanation for the investment being carried out.
“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."
