Fine Gael candidate in the Midlands North West constituency Nina Carberry has called for an urgent review of the Targeted Agriculture Modernisation Schemes (TAMS) reference costs.

Carberry said that the costings review is needed to bolster farmer investment after Revenue’s clarification that many farm items are not VAT claim-back eligible for non-VAT registered farmers.

Revenue’s Tuesday publication stated that key investment items - including slurry scrapers, electronic calf feeders, cow collars and calving cameras - are not deemed eligible for non-VAT registered farmers to claim back.


“I know from speaking to farmers across the Midlands North West the uncertainty that has been created around VAT reclaims on important farm investments,” the MEP candidate said.

“Farmers investing in items that improve animal welfare, labour efficiency and environmental action should be supported.

“Revenue [has] now clarified that a number of items that support these objectives are not eligible for a refund.”

Carberry commented that many of the items ineligible for VAT claim-backs are eligible for support under TAMS, but with reference costs “out of line” with actual costs.

“A four-station computerised calf feeder has a reference cost of €13,680 ex-VAT under TAMS, while the true cost from widely quoted prices is closer to €18,500 ex-VAT,” she said.

Significant bill

“Farmers will now not only find themselves paying a significant VAT bill, but the grant aid is falling well short of the true cost of the investment.

“The Department of Agriculture could soften the blow for farmers by reviewing the reference costs under TAMS and bringing them in line with the reality for farmers on the ground.”

Tranche one and two applications made under TAMS provide the Department of Agriculture with receipts showing up-to-date reference costs, Carberry added.

“We should not be deterring farmers from investing in their businesses to make them more efficient and sustainable. This review needs to take place urgently.”

Read more

Revenue issues list of eligible items for VAT reclaim

Revenue's VAT guidance 'very disappointing' - IFA