Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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112. To ask the Minister for Finance further to Parliamentary Question No. 154 of 25 September 2018, if he will address a matter (details supplied); and if he will make a statement on the matter. [40286/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Parliamentary Question No. 154 of September 2018 asked if unregistered farmers can claim back V.A.T. on sensor lighting for farm security. I advised at the time that The Value Added Tax (Refund of Tax) (No 25) Order, 1993 provides for a refund of VAT incurred by unregistered farmers in the “construction, extension, alteration or reconstruction of any building or structure which is designed for use solely or mainly in his or her farming business”. The installation of security lighting would not of itself qualify for a refund of VAT under this Order but would qualify where it is a constituent element of qualifying construction work undertaken by an unregistered farmer. I further advised that each claim for a refund of VAT under this Order is evaluated on its merits.

A VAT refund could only arise where the supply of sensor lighting is made as part of the construction, extension, alteration or reconstruction of any building or structure which is designed for use solely or mainly in his or her farming business. In other words, if it is a stand-alone supply of lighting or where it is not part of a broader construction, extension, alteration of reconstruction supply, a VAT refund will not be allowed. Each case is examined on its merits and a decision is made on a case by case basis.

There were 21,227 claims made in 2017 under The Value Added Tax (Refund of Tax) (No 25) Order, 1993 by 16,475 unregistered farmers.