Relevant Matter
Matters involving public funds
Public Policy Area
Finance
Period
1 Jan, 2024 to 30 Apr, 2024
Specific Details
VAT 58 Refund on Capital Items for Unregistered Farmers
Intended results
To make the minister aware 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 that VAT was previously refunded on, such as automatic calf feeders, robotic scraping systems, drafting gates and bulk milk tanks, have now been refused by Revenue. This change in the interpretation of the relevant legislation is abrupt and without any communication.
To highlight the major issues this has caused at farm level. For many farmers such large capital expenditure is financed by bank lending, and the amount financed would be VAT exclusive amount because of the expectation that the VAT incurred would be refunded. These farmers now face a situation where the amount borrowed no longer covers the expenditure incurred and may struggle to find further finance to cover this shortfall.
To point out that a further issue this change of interpretation is 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 this is no longer the case for such items, the ceiling for those items needs to be adjusted up accordingly and further funding allocated to the TAMS.
To seek a meeting with the Minister for Finance to discuss these matters.
Name of person primarily responsible for lobbying on this activity
Tim Cullinan IFA President, Rose Mary McDonagh IFA Farm Business Chair, Frank Brady IFA Regional Chair, Joe Sweeney IFA Donegal Chair, Francie Gorman IFA President
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.
Heather Humphreys
Minister (Department of Social Protection)
Kieran O'Donnell
Minister of State (Department of Housing, Local Government and Heritage)
Michael McGrath
Minister (Department of Finance)
Padráig Mac Lochlainn
TD (Dáil Éireann, the Oireachtas)
Pearse Doherty
TD (Dáil Éireann, the Oireachtas)
Jackie Cahill
TD (Dáil Éireann, the Oireachtas)
Charlie McConalogue
Minister (Department of Agriculture, Food and the Marine)
Amii McKeever
Adviser to Minister (Department of Agriculture, Food and the Marine)