Specific Details
Finance Bill 2025
Intended results
Value Added Tax
To register a strong objection to the inclusion of points (vi) and (vii) under Section 65 ("Persons not accountable persons unless they so elect") of the Finance Bill 2025.
That these provisions, read in conjunction with S.I. No. 327 of 2025 - Value Added Tax (Restriction of Flat Rate Addition) Order 2025, would compel all broiler farmers who are currently operating under the flat-rate farmer scheme to register for VAT.
That this change represents a fundamental departure from the purpose and spirit of the flat-rate scheme, creating unnecessary administrative and financial burdens for family farms. It will do likewise for accountants, and Revenue Commissioners.
That Section 65 of the Finance Bill 2025 proposes to amend Section 6(1)(a) of the Value-Added Tax Consolidation Act 2010 by adding two new clauses
(vi) agricultural services of the kind specified in an order made under section 86A, the total annual turnover for which has not exceeded the services threshold, or
(vii) agricultural produce of the kind specified in an order made under section 86A, the total annual turnover for which has not exceeded the goods threshold;”,
That these clauses give legislative effect to S.I. No. 327 of 2025, which from 1 September 2025 removes from the flat-rate addition “the supply of any agricultural service of stock minding, rearing and fattening in the course of the production of broiler chickens.” It did not remove them from operating as flat rate farmers which is critically important to their operation as mixed family farms.
That the combined effect of these measures is that broiler farmers will no longer be entitled to apply the flat-rate addition and will be forced to register for VAT if they continue to supply those services, or goods, due to the threshold limitations.
1. Practical and Economic Implications
That the impact of this legislative change will be extensive, particularly for family-run mixed farms operating across multiple farming businesses. The IFA highlights the following key concerns
a) Splitting of Farm Enterprises
Mixed farms will now be required to divide their operations if they wish to continue to charge the FRA on the other part(s) of their farm into
• A VAT-registered component for broiler poultry production, and
• A VAT-unregistered component for other agricultural activities such as dairy or beef.
That this division will necessitate dual accounting systems, separate VAT treatment, and additional compliance obligations — resulting in higher legal, advisory, and administrative costs for already overstretched farm families.
b) Increased Cashflow Pressures
That under the new rules, processors will be required to pay broiler farmers a sales price plus 13.5% VAT, which those farmers must then remit to Revenue.
This introduces a significant cashflow requirement and working capital burden, as farmers will have to manage VAT liabilities before receiving full payment or refunds.
c) Financial and Professional Costs
Analysis from IFAC and farm accountants shows that the new requirement will lead to
• Registration and restructuring costs;
• Legal and advisory fees related to business reorganisation;
• Potential Capital Gains Tax exposure when assets are reclassified; and
• Ongoing accountancy fees linked to quarterly VAT filings and dual-system management.
Administrative Burden on Revenue
That the proposed change will also increase administrative work for the Revenue commissioners, who will need to process a new cohort of VAT- registered farmers, handle refund claims, monitor compliance, and respond to complex mixed enterprise queries. This represents a high-cost administrative exercise with minimum fiscal benefit.
Policy Contradiction
The flat-rate farmer scheme, grounded in EU VAT Directive 2006/112/EC, was designed to simplify compliance for small and medium farmers, recognising their low risk and limited scale. The removal of that simplicity for broiler produces and mixed farming enterprises with broiler production encompassed directly contradicts the spirit and purpose of the flat-rate system and risks creating an inequitable two-tier treatment within Irish agriculture.
The IFA proposes
• Farmers should retain the option to elect to register for VAT where they choose;
• VAT registration should not be imposed as a compulsory measure on a specific class of farmers; and
• The flat-rate scheme must remain a practical, workable mechanism that protects family-run farms from unnecessary bureaucracy.
The overriding objective of the IFA has always been to protect family farms during this period of transition and to maintain a fair, practical, and workable taxation framework. Unfortunately, the SI327/2025 means that broiler farmers no longer have the entitlement to charge flat rate addition on the supply of their service, but it does not tie them to thresholds and thus remove them from operating as flat rate farmers – nor should it.
The IFA has engaged constructively and consistently with both the Department of Finance and the Revenue Commissioners to find solutions that are proportionate, transparent, and achievable for farmers on the ground.
However, the inclusion of points (vi) and (vii) under Section 65 of the Finance Bill 2025 is unworkable, unattainable, and fundamentally unfair. It introduces unnecessary costs, complexity, and administrative burdens that undermine the very foundation and intent of the flat-rate farmer scheme.
A farmer should retain the option to register for VAT as a flat-rate farmer (FRA) if they so elect, but this must never be imposed upon them through legislative compulsion.
To call for the immediate removal of paragraphs (vi) and (vii) under Section 65 of the Finance Bill 2025. This change is essential to protect the integrity of the flat-rate system, ensure fair treatment of farmers, and avoid unnecessary disruption across the agricultural sector.
Residential Zoned Land Tax (RZLT)
To highlight that Budget 2026 indicated that for landowners subject to RZLT in 2026 there will be another opportunity to request a change from their Local Authority in the zoning of their land. “There will be an exemption from the 2026 RZLT liability if a landowner applies for a rezoning to reflect the “genuine economic activity currently being carried out on the land”
This remains a temporary solution from a tax that is unfair to genuine farmers of land that falls within the scope of RZLT. Responsibility to gain the exemption, and the cost associated with gaining the exemption falls back on the landowner.
IFA has campaigned to have a permanent solution that will remove actively farmed land from the scope of residential zoned land tax. This remains the policy of IFA.
(d) in section 653C(4), by the substitution of the following paragraph for paragraph (f)
(f) where land is included in a development plan in accordance with section 10(2)(a) of the Act of 2000 or section 43(6) of the Act of 2024, or a local area plan in accordance with section 19(2)(a) of the Act of 2000, zoned— (i) solely or primarily for residential use, or (ii) for a mixture of uses, including residential use,
a statement that a person may, in respect of land that such a person owns, make a submission to the local authority requesting a variation of the zoning of that land.”
“(e) during the period beginning on 1 February 2026 and ending on 1 April 2026, to a local authority on a revised map for the year 2026 published in accordance with section 653M(1), The local authority concerned shall acknowledge, in writing, receipt of a submission to the person who made the submission—
(i) in a case in which the submission is made under subsection(1) (d), not later than 30 April 2025, and
(ii) in a case in which the submission is made under subsection(1) (e), not later than 30 April 2026.”,
IFA proposes that landowners with declared agricultural activity be removed from the scope of residential zoned land tax.
Name of person primarily responsible for lobbying on this activity
Francie Gorman IFA President, Bill O'Keeffe IFA Farm Business Chair, Nigel Sweetnam IFA Poultry Chair, Robert Malone 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.
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.
Barry Cassidy
Special Adviser (Department of Agriculture, Food and the Marine)
Brian Purcell
Special Adviser (Department of Agriculture and the Marine)
Cathy Bennett
TD (Dáil Éireann, the Oireachtas)
Colm Burke
TD (Dáil Éireann, the Oireachtas)
Danny Healy-Rae
TD (Dáil Éireann, the Oireachtas)
David Maxwell
TD (Dáil Éireann, the Oireachtas)
Edward Timmins
TD (Dáil Éireann, the Oireachtas)
Eileen Lynch
Senator (Seanad)
Erin McGreehan
Senator (Seanad)
Fiona O'Connor
Special Adviser (Department of Finance)
Joanne Collins
Senator (Seanad)
Joe Cooney
TD (Dáil Éireann, the Oireachtas)
Joe O'Reilly
Senator (Seanad)
Martin Heydon
Minister (Department of Agriculture, Food and the Marine)
Martin Kenny
TD (Dáil Éireann, the Oireachtas)
Matt Carthy
TD (Dáil Éireann, the Oireachtas)
Michael Fitzmaurice
TD (Dáil Éireann, the Oireachtas)
Natasha Newsome Drennan
TD (Dáil Éireann, the Oireachtas)
Paraic Brady
Senator (Seanad)
Paschal Donohoe
Minister (Department of Finance)
Paul Lawless
TD (Dáil Éireann, the Oireachtas)
Pearse Doherty
TD (Dáil Éireann, the Oireachtas)
Peter 'Chap' Cleere
TD (Dáil Éireann, the Oireachtas)
Robbie Gallagher
Senator (Seanad)
Sinéad McPhillips
Secretary General (Department of Agriculture, Food and the Marine)
Victor Boyhan
Senator (Seanad)
William Aird
TD (Dáil Éireann, the Oireachtas)