The Tánaiste intends to raise the “VAT rebate question for those in agriculture” with the Minister for Finance to ensure meetings on the issue happen with the Revenue Commissioner.
He told the Dáil this week that he would raise the issue with the minister so that “progress ensues”.
The Fianna Fáil TD for Tipperary, Jackie Cahill, who is also the chair of the Joint Oireachtas Committee on Agriculture, had highlighted the ongoing debate over the Revenue’s current approach to VAT refunds for unregistered farmers in the Dáil yesterday (Thursday, May 16).
The Revenue Commissioners appeared as witnesses before the Oireachtas agri-committee last week to discuss the VAT rebate for farmers.
During the committee meeting the officials had maintained that Revenue’s interpretation of the VAT refund order has not changed.
However Deputy Cahill placed on the official Oireachtas record that he was “disappointed” with the answers given by the Revenue representatives.
He told the Dáil yesterday that commissioners had “committed” to hold meetings with stakeholders to “produce guidelines as to what is VAT refundable for unregistered farmers”.
“The Tánaiste should use his good offices to ensure this happens as quickly as possible in order that the status quo can be restored as regards the infrastructure items on which VAT can be reclaimed,” Deputy Cahill added.
VAT
Revenue representatives had told the Joint Committee on Agriculture, Food and the Marine that VAT refunds have been allowed where farming equipment is “considered a fixture”.
“A fixture is an item that is permanently installed in the farm building and, once installed, cannot be removed without causing significant damage or destruction to the farm. building, or to the fixture itself,” one of the representatives told the committee.
But members of the committee had reacted angrily to this and highlighted that previously items such as calf feeders were refundable.
Earlier this week Revenue Commissioners visited the farm of the former deputy president of the Irish Farmers’ Association (IFA) Brian Rushe to see in person the items which farmers believe should be eligible for a VAT refund.
Revenue said the visit was part of its “ongoing engagement” with the farming sector in relation to VAT refunds.
It has said that it intends to publish updated guidance in May.