Call for restoration of VAT reclaims for capital expenditure projects on farms

Farmer and local councilor John Dolan has called on the Minister for Finance to engage with the Revenue Commissioners in relation to the change in the interpretation of reclaiming VAT on different on farm investments.

"I am aware of a number of farmers who are going to be affected very significantly by the change in how Revenue determines what gets a rebate or not. Previously listed items like milk bulk tanks, automatic scrapers, meal bins and milking equipment that always qualified for the VAT reclaim seems to be getting refused.

"I always understood that in order to get the reclaim the item must be fixed, which meant that you could not claim the VAT back on a tractor or slurry tank for example, but any capital item like a meal bin you won’t be ever moving," said Cllr Dolan.

Farmers have made significant investments and have budgeted for the VAT coming back only to be told that Revenue have just decided to change their 'interpretation’ is "simply not good enough," he added.

"The real kick in the teeth for farmers is that these changes have happened without warning. I have been engaging with Minister Peter Burke to explain to Minister McGrath that Revenue must go back to the way that VAT reclaims were done for years without any problems.

"A bit of common sense is needed in the Revenue and the Minister needs to intervene to make sure it goes back to the way it was," the local representative concluded.