Revenue VAT rules need close scrutiny

At least some clarity has now been given as to what will definitely qualify for a VAT refund, writes rural accountant Kieran Coughlan.

The regulations which govern the refund of VAT for unregistered farmers are Statutory Instruments 201 of 2012.

The Revenue Commissioners have issued new guidelines on what items are acceptable for the purposes of obtaining a VAT refund which applies to unregistered farmers.

The VAT 58 process is designed to level the playing field for unregistered farmers to allow them to claim back VAT on certain fixed equipment without the need to become VAT-registered. In some ways, this keeps the system that applies to farmers fairly straightforward in that unregistered farmers do not have the hassle of filing VAT returns every two months, and meanwhile, the Revenue Commissioners need not concern themselves with processing VAT returns for the 100,000 or so farmers who would otherwise be VAT registered if the system didn’t exist.