VAT Uncertainty Challenges Irish Dairy Farmers

In Ireland, a growing uncertainty is troubling dairy farmers and milking machine dealerships regarding the eligibility of VAT refunds, as reported by Eamonn McEnteggart, chair of the Irish Co-operative Organisation Society (ICOS) dairy committee and of Milk Quality Ireland Co-operative Society Ltd. This confusion is pivotal as it could determine whether farmers proceed with investment projects on their farms.

A recent meeting with senior Revenue officials sought to clarify the VAT refund eligibility for various dairy equipment such as automatic cluster removers, robotic scrapers, and other essential milking components. The discussions, involving key stakeholders like the main dairy equipment manufacturers, milking machine technicians, ICOS, and IFAC, aimed to address conflicting requirements posed when submitting claims for grant aid under the Targeted Agricultural Modernisation Scheme (TAMS) and VAT refunds.

McEnteggart emphasized the necessity for clarity and greater assurances from Revenue, as "the ability to avail of a VAT refund is often the difference between whether a farm investment project goes ahead or not." According to the discussions, VAT refunds remain eligible for milking parlour and bulk milk tank installations provided construction, extension, alteration, or reconstruction work has been performed, be it on new or existing structures.