MINISTER for Finance Michael McGrath is consulting the Attorney General on expanding the rules of the Vat return scheme on fixed farm items to include all of these essential items.
And farmers in West Cork have been urged to highlight examples where they have been unable to claim Vat back on items.
The decision by Revenue to change their interpretation regarding paying Vat on large fixed farm items has caused huge concern among farmers.
Cork South West TD Christoper O’Sullivan said this has been ‘one of the biggest issues to rock the farming sector’.
‘Farmers who had taken out loans to finance projects on their farms, to make their farms more efficient, to make their farms more sustainable, were relying on tax rebates to repay a lot of those loans,’ Deputy O’Sullivan said.
The IFA president Francie Gorman met with Revenue on the issue last month and Revenue officials confirmed to IFA that refunds will be available on drafting gates, hydraulic scrapers and new-build milking parlours.
Deputy O’Sullivan said Revenue had asked farm organisations to come back with examples of where farmers have been unable to claim back Vat on these items. ‘I am urging as many farmers as possible who have had this experience or who have had issues claiming the Vat back on their farm items, to get in touch with their farming organisations as soon as possible, so that they can build a case for returning to the traditional interpretation of Vat on these items.’
Deputy O’Sullivan also said that Finance Minister Michael McGrath is speaking with the Attorney General to get legal advice on expanding the rules of this scheme to include all of these essential items.
‘I am hoping that common sense will prevail in this regard.’
