Paul Connaughton (Galway East, Fine Gael)
Link to this: Individually | In context

Question 156: To ask the Minister for Finance if value-added-tax can now be reclaimed on a wind turbine purchased in late 2010; and if he will make a statement on the matter. [22958/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

I assume the Deputy is referring to farmers who are not registered for VAT, known as flat-rate farmers. I am advised by the Revenue Commissioners that the Value-Added Tax (Refund of Tax) (No 25) Order, 1993 provides for refunds to such flat-rate farmers for tax borne on the "construction, extension, alteration or reconstruction of any building or structure which is designed for use solely or mainly for the purposes of a farming business". However, while the installation of a wind turbine may be the construction of a structure, such a structure is not "designed for use solely or mainly for the purposes of a farming business". It is designed rather to generate electricity for wherever required. Consequently, no VAT incurred on the purchase of a wind turbine in 2010 can be refunded under the Order. As I outlined in Budget 2012, I will be amending the VAT Refund Order to provide that flat-rate farmers may claim a refund on wind turbines purchased from 1 January 2012.