Relevant Matter
Matters involving public funds
Public Policy Area
Finance
Period
1 Sep, 2023 to 31 Dec, 2023
Specific Details
Refunds under Section 58 Value-Added Tax (VAT)
Intended results
To highlight that many items of a fixed nature have always received refunds of VAT. However, in the past number of months, it has been brought to IFA's attention that items the VAT could previously be reclaimed upon, such as automatic calf feeders, robotic scraping systems, drafting gates and bulk milk tanks, have now been refused refunds by Revenue. This change in the interpretation of the relevant legislation has been abrupt and without any communication or engagement.
To challenge this change in interpretation of the S.I. by Revenue, which is causing major issues at farm level. For many farmers such large capital expenditure is financed by bank lending, and the amount financed would be the VAT exclusive amount because of the expectation that the VAT incurred would be refunded.
To highlight that these farmers now face the situation where the amount borrowed no longer covers the expenditure incurred and may struggle to find further finance to fill this shortfall. In addition, many who had planned expenditure on such items are now reconsidering such expenditure due to this extra cost.
That the issue this change of interpretation is also causing, is with the Targeted Agriculture Modernisation Schemes (TAMS) grant funding. The ceilings for items under TAMS are set as the VAT exclusive amount in most instances, again with the expectation that the VAT incurred would be refunded. If as it appears this is no longer the case for such items, then the ceiling for those items needs to be adjusted up accordingly and further funding allocated to the TAMS.
To request a meeting with the Minister for Finance to engage further on this issue.
Name of person primarily responsible for lobbying on this activity
Tim Cullinan IFA President, Rose Mary McDonagh IFA Farm Business Chair, Nigel Sweetnam IFA Poultry Chair, Karol Kissane IFA Senior Policy Executive, Sarah Hanley IFA Policy Executive
Did any Designated Public Official(DPO) or former Designated Public Official(DPO) carry out lobbying activities on your behalf in relation to this return? You must include yourself, and answer Yes, if you are a current DPO or a DPO at any time in the past. (What is a Designated Public Official?)
No
Did you manage or direct a grassroots campaign?
No
Was this lobbying done on behalf of a client?
No
Lobbying activity
The following activities occurred for this specific Subject Matter Area.
Informal communication (2-5)
Designated public officials lobbied
The following DPOs were lobbied during this return period on this specific Subject Matter Area. These DPOs were involved in at least one of the Lobbying Activities listed above, but not necessarily all of them.
As returns are specific to a Subject Matter Area the above Lobbying Activities may be associated with multiple returns.
Grant Sweetnam
Special Adviser (Department of Public Expenditure and Reform)
Kevin Barrett
Special Adviser (Department of Public Expenditure and Reform)
Kieran O'Donnell
Minister of State (Department of Housing, Local Government and Heritage)
Michael McGrath
Minister (Department of Finance)