Issues around the VAT Refund Scheme for farmers have been highlighted by Cavan County Councillor, Sarah O'Reilly.
Aontu Cllr Sarah O’Reilly called on the Minister for Expenditure and Revenue to clarify what farm equipment is eligible for a VAT refund under the current ‘interpretation of the law’ for farmers. She is also asking the Government to amend the statutory instrument to include previously allowable equipment. She said a new interpretation by Revenue of the VAT Refund Scheme has left many farmers really angry, bewildered and confused.
The local councillor told Northern Sound that she is contacted on a daily basis by farmers who have been refused VAT refunds on items of equipment - most notably bulk milk tanks and automatic scrapers. Cllr O’Reilly went on to say that previously eligible fixed machinery items including calf feeders, automatic scrapers and bulk milk tanks are now excluded from the scheme.
The councillor said that farmers can see for themselves that the policy seems to have changed somewhat in recent months in relation to claiming back VAT. Cllr O'Reilly says the government needs to rectify the issue of VAT refunds for farm equipment.
