Oireachtas Joint and Select Committees

Tuesday, 15 November 2016

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2016: Committee Stage (Resumed)

2:00 pm

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael)
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The new section 86A will provide the Minister with the power to make to make an order excluding particular agricultural goods or services as specified in that order from the flat-rate addition scheme. The power can be exercised where the Revenue Commissioners have carried out a review and the Minister is satisfied that because of business structures, contractual arrangements or models in place in a particular sector, the application of the flat-rate addition within that sector has resulted in and would otherwise continue to result in a systematic excess of flat-rate addition payments over VAT on inputs incurred by flat-rate farmers in that sector. Where such an order has been made, any farmer who supplies these particular products or services can elect to register to reclaim VAT on their inputs. Therefore, VAT on inputs should not be a cost to farmers who no longer receive flat-rate addition payments in respect of their supplies.