ICMSA say Government intervention can provide solution 'quickly and cleanly' to VAT issue

Speaking following a meeting with the Revenue Commissioners in relation to farmers claiming VAT on certain equipment, the President of ICMSA, Denis Drennan (pictured), said that while the Revenue Commissioners stated that there had been no change in policy, it is quite clear from the practical experience of farmers that the policy has changed and calf feeders and bulk milk tanks have been excluded in recent months. Mr Drennan said it was just as clear that Government intervention will be required to resolve this matter.

“ICMSA welcomes the clarification from the Revenue Commissioners that fixed automatic scrapers and drafting gates remain eligible for the VAT reclaim and it was agreed that ICMSA would supply further information in relation to bulk milk tanks, which are obviously an integral part of the milking unit and thus should be eligible for a VAT reclaim. But this whole episode has created huge financial pressures for individual farmers who were expecting to reclaim VAT on purchases, as well as halting investments on other farms due to the uncertainty introduced. The other factor that’s going largely unremarked is the major negative impact on supplying firms operating in every corner of rural Ireland”, said Mr Drennan.

The new ICMSA President pointed out that this uncertainty can be resolved very quickly if the Government states categorically that these items that were previously eligible will be re-instated and that -if necessary - the statutory instrument on this matter should be amended to remove any doubt on this matter.

Noting that there is a precedent in relation to this where the SI was amended to provide clarity on micro generation, Mr Drennan said that much distress and damage on the matter can be alleyed quickly and cleanly by the Government taking decisive action and ensuring that these items will be VAT reclaimable going forward.