31-07-2025
Confusion Among Farmers Over Vat Refunds for Dairy Farm Projects Icos
There is a lot of "uncertainty and confusion" among dairy farmers and milking machine dealerships in relation to what is currently eligible for a VAT refund, Revenue officials have been told.
According to Eamonn McEnteggart, chair of the Irish Co-operative Organisation Society (ICOS) dairy committee and of Milk Quality Ireland Co-operative Society Ltd, the confusion around VAT refunds could make the difference as to whether a farmer green lights or stalls an investment project on their farm.
McEnteggart said Milk Quality Ireland, together with representatives from the main dairy equipment manufacturers, milking machine technicians, ICOS and IFAC, recently met with senior officials from Revenue to highlight the concerns of both farmers and the wider industry.
(L-R) Sean Reid, MQI technician representative; Sinead Farrell, ICOS; Eamonn Farrell, ICOS; Marty Murphy, IFAC; Eamonn McEnteggart, MQI chair,;Seamus Goggin, MQI technicians representative; Ciaran Murphy, MQI manufacturers representative. Source: ICOS
He said a number of key issues including the treatment of automatic cluster removers, robotic scrapers and milking and dairy equipment in relation to VAT refunds were raised with senior Revenue officials.
According to McEnteggart, concerns around the "conflicting requirements" posed when submitting payment claims for grant aid under the Targeted Agricultural Modernisation Scheme (TAMS). and VAT refunds were also highlighted in the meeting with Revenue.
He added: "We met with Revenue to seek greater clarity and 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.'
'We held a useful exchange with Revenue and agreed to make a follow up submission on the treatment of automatic cluster removers, as they are an integral part of modern milking machines and it makes no sense to treat them separately.
"We received assurances from Revenue that VAT refunds are eligible for milking parlour and bulk milk tank installations, whether it's a new or existing building, as long as construction, extension, alteration, or reconstruction work has been carried out".
