Ireland’s farmers received a welcome boost today as Revenue announced an extension to the VAT refund scheme for farmers.
Farmers who are not VAT-registered can reclaim VAT paid by them on:
- farm buildings
- fencing and other fixed structures
- land drainage and
- land reclamation
Today, a Revenue eBrief confirms that that VAT refunds may now be claimed in respect of
- Concrete underpasses, installed to facilitate the movement of livestock beneath a public road.
- Hedgerows planted by a farmer for the purpose of stock proofing. This does not include hedgerows grown for decorative, ornamental or domestic shelter purposes.
- Ploughing and re-seeding works completed as part of a land reclamation project.
Eligible farmers can claim VAT repayments on Form VAT58 in accordance with the Value Added Tax (Refund of Tax) (No. 25) Order 1993, which is also online. Farmers may claim VAT refunds within four tax years of incurring the relevant expenditure.
Please note that this scheme does not apply to VAT-registered farmers, who may reclaim VAT on their regular VAT returns but are subject to VAT on sales of farming produce and livestock.
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