Revenue has issued a long-awaited list of items eligible for VAT reclaim, as well as items which are not eligible.

The full list of items covered is listed below.

According to Revenue, flat-rate farmers who are not registered for VAT may reclaim VAT paid by them in relation to the construction, extension, alteration or reconstruction of:

  • Farm buildings or structures.
  • Fencing, draining or reclamation of farmland.
  • Construction, erection or installation of qualifying equipment for the micro-generation of electricity for use in the farm business.
  • Revenue has listed examples of farming structures which include cattle grids, concrete paths adjacent to farm buildings, farm roads, farmyards, silage pits, silos, slatted tanks, turnout/all-weather paddocks, underpasses and wells which service the farm.

    Its list of farm buildings which are eligible include barns or lean-to sheds, brooder houses, poultry housing, cow or calf sheds, cubicle sheds, slatted sheds, parlour sheds, stables for horses used for breeding and stock-minding and piggery sheds.

    Examples of items covered under farm buildings and structures include:

  • Animal mats (fixed).
  • Connection to power grid.
  • Crushes (fixed).
  • Cubicles.
  • Drafting gates.
  • Drainage systems.
  • Doors.
  • Electrical wiring.
  • Feed barriers/rails.
  • Fixed ladders or walkways.
  • Gutters.
  • Handrails.
  • Heating systems.
  • Heat/smoke detection/alarm systems.
  • Sewage systems (eg plumbing).
  • Shuttering.
  • Slatted pens.
  • Steps.
  • Ventilation systems.
  • Water pipes.
  • Windows.
  • Items not eligible for VAT reclaim according to Revene include (not exhaustive):

  • Add-on milk points / clusters.
  • Automatic calf feeders.
  • Calving cameras.
  • Cow brushes.
  • Cow collars.
  • Cow mats (not fixed).
  • Dust cyclone / cyclone separators
  • Egg vending machines.
  • Feed bins (excluding silo feed bins).
  • Heat and health monitoring systems.
  • Milk vending machines.
  • Pasteurisation tanks.
  • Robotic scrapers.
  • Security cameras.
  • Slurry bags.
  • Slurry spreaders.
  • Yard scrapers.
  • Revenue has said that where equipment is not refundable, any construction, reconstruction or alteration work related to the installation of the equipment into the farm building or structure may be allowed (eg, cost incurred in installing piping and electricals for an automatic calf feeder are allowed. However, the calf feeder equipment is not allowed).

    Farmers, Revenue said, should provide details of the works carried out, invoices and photographs to make a claim.

    VAT incurred on maintenance or repairs of equipment or machinery is not refundable.

    Fencing of farmland

    VAT incurred on expenditure on fencing used for the purpose of farming is refundable by flat-rate farmers.

    Expenditure on fencing covered by the order includes:

  • Ancillary equipment for fencing (eg gap handles, pigtails, insulators, gate hangers).
  • Batteries for electric fencing.
  • Construction / build service.
  • Cement.
  • Electric wiring.
  • Fencing installation costs.
  • Gates.
  • Hedgerow suitable for stock proofing.
  • Mobile / moveable fences.
  • Posts.
  • Nails.
  • Wiring.
  • Expenditure on fencing not allowable under the order includes:

  • Batch latch gate release systems.
  • Gripple tools.
  • Mobile crushes.
  • Phase testers.
  • Tensioning tools.
  • Tree/hedgerow plants outside of those suitable for stock proofing.
  • Wire strainers.