Oireachtas Joint and Select Committees
Wednesday, 8 May 2024
Joint Oireachtas Committee on Agriculture, Food and the Marine
VAT Refunds to Unregistered Farmers: Revenue Commissioners
Ms Davena Lyons:
If I may jump in, we have engaged with industry representatives in the last couple of months and Mr. Egan's section has engaged with them continuously over the years. We have listened to the sector's concerns on the need for clarity. In the next couple of weeks, we expect that guidance to issue on our website. The document is dynamic because new products will potentially come on the market and we will have to consider everything as it arises in future. The document will list what is and is not in scope, which Mr. Egan covered. It will provide a good bit of clarity.
We analysed activity over the last couple of years. The opening statement referred to an approval rate of 96%. More than 37,000 claims were submitted to us last year and we paid out €88 million to customers. Our first objective in Revenue is to support farmers by getting money back out for eligible claims as soon as we can and to work with claimants on a one-on-one basis if there are elements of the claim that we need to consider. Over the past five years, about €450 million has been paid out. The statistics show strong engagement with customers. A few years ago, we received 21,000 claims. In 2024, that figure is up at 37,000 claims and the value of what is going out the door has increased from €50 million to €88 million. We see positive engagement with the sector. We are trying to take its concerns on board and consider where we go with it.
As regards the guidelines, when submitting a claim farmers will have to ask themselves whether it aligns with the order. We have to administer in line with the order. The question is whether the outlay of the farmer constitutes the construction, extension, alteration or reconstruction of a farm building or structure. It is within that remit we work. Then there is the question of whether any of the machinery installed as part of that work necessitates that it is permanently installed in the farm building to the extent that its removal would significantly damage either the equipment or the building. If it is wholly used for the purpose of the sector, that is a given. Those are the question. We will set out specific products that fall within the remit of the order. Our overall objective here is to support the sector by getting out money for eligible claims.