Seán Canney (Galway East, Independent)
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66. To ask the Minister for Finance if he will amend the flat-rate farmer’s refund order section 5.3 outdoor water trough systems to include plastic troughs which are not allowable under the order; and if he will make a statement on the matter. [30253/24]

Jack Chambers (Dublin West, Fianna Fail)
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From my predecessor’s reply of 11 June 2024 to the Deputy’s previous question (25508/24) about the rules governing the reclaim by a farmer of VAT incurred on plastic water troughs, the Deputy will understand that the VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law must comply.

The Value-Added Tax (Refund of Tax)(Flat-rate Farmers) Order 2012 (S.I. No. 201/2012) is the Irish legislation which provides for limited situations in which flat-rate farmers are specifically permitted to claim a refund of the VAT incurred by them on particular inputs. Ireland’s Refund Order is permitted under EU law subject to certain strict conditions, including that its scope is not extended. This means that it would not be compatible with EU law to alter the Order so as to provide for VAT refunds on items that are not currently within the Order’s scope.

The Deputy will be aware from the previous reply that in June 2024, Revenue published detailed guidance – in the form of a Tax and Duty Manual (TDM) – about the Refund Order. I understand from Revenue that paragraph 5.3 of their guidance document explains that Outdoor Water Trough Systems are refundable under the Order. The guidance outlines the purpose of these systems and their structural characteristics which bring them within the meaning of a “farm building or structure” so that they qualify for a refund under the Order. The guidance document indicates that plastic troughs are not allowable under the Order. This is because typically they are not regarded as a building or structure.

As explained in my predecessor’s response, the TDM also explains that VAT may be refunded in circumstances where goods, which themselves are outside the scope of the Refund Order, are installed into a farm building or structure in such a way that they become a fixture. While it is not likely that an installed plastic drinking trough would constitute a fixture within the meaning of VAT law, nonetheless, each claim is assessed on its merits.