Séamus Kirk (Louth, Fianna Fail)
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126. To ask the Minister for Finance his plans to make on-farm micro energy installation eligible for full VAT refund on capital spend; and if he will make a statement on the matter. [33913/13]

Michael Noonan (Limerick City, Fine Gael)
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Farmers and other persons who are registered for VAT are accountable persons for VAT in respect of all their taxable activities, whether those activities consist solely of farming or both farming and other activities such as the generation of electricity for provision to the national grid. As accountable persons for VAT, they would be entitled to claim input credit for VAT charged on the installation of an on-farm micro energy generator, for use in their taxable activities.

In so far as farmers who are not registered for VAT are concerned, they are not in the normal course entitled to credit for, or repayment of, VAT incurred by them on their business inputs. However, under the Value-Added Tax (Refund of Tax) (Flat-rate Farmers) Order 2012 farmers not registered for VAT are also entitled to a direct and full refund of VAT in respect of farm buildings, fencing, land improvement works and, where purchased after 1 January 2012, micro energy equipment for their farming use.