David Maxwell (Cavan-Monaghan, Fine Gael)

I want to ask about VAT registration for poultry farmers. As we know, since 1 September broiler chicken services in Ireland are no longer eligible for the flat-rate addition scheme and must charge VAT for services such as rearing and fattening. Farmers who supply broiler chicken services now need to register for VAT if their taxable supplies are over the threshold. This is a serious issue. While straightforward broiler farms will be able to register for VAT with relative ease, it is an issue for many farmers who have dairy or beef operations, or both, who diversified into broiler production for an extra income stream or to give a son or daughter an income until that farmer can retire. A farmer who is supplying broiler chickens must now register this part of the farm for VAT purposes, even though the farm is operating as a dairy, beef and broiler operation. Farmers are looking at forming a company for the chicken part of the farm, with agriculture advisers, bookkeeping, VAT returns, registration for PAYE and corporation tax, and new loan agreements for the parts of the land that are in broiler production. I ask that this be looked at again.

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