Noel McCarthy (Cork East, Fine Gael)
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443. To ask the Minister for Finance the current turnaround period for ROS VAT unregistered refunds to farmers; the efforts his Department is making to improve these turnaround times to prevent cashflow issues for farmers; and if he will make a statement on the matter. [12571/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Although not registered for VAT, flat-rate farmers may be permitted, in certain limited situations, to claim a refund of the VAT incurred by them on particular inputs. The Value-Added Tax (Refund of Tax) (Flat-rate Farmers) Order 2012 (S.I. No. 201/2012) allows for refunds to be claimed on outlay incurred on:

- the construction, extension, alteration or reconstruction of farm buildings or structures;

- the fencing, draining and reclamation of farmland; and

- the construction and/or installation of qualifying equipment for the purpose of micro-generation of electricity for use in a farm business.

Flat-rate farmers can submit claims for such refunds of VAT at any time within the 4-year time limit. The majority of claims are made by the online submission of a VAT58 return through the Revenue Online Service (ROS) or MyAccount channels.

I am advised by Revenue that the peak filing period for claims is normally between mid-November (the Income Tax filing period) and late January. The current timeline for processing claims in respect of refunds under the Order is running at just over 4 weeks, a reduction from an average of 6 weeks during January.

Claims are dealt with in date order of receipt of fully completed applications. Claimants should ensure that all information required in support of the claim is submitted as part of the application (including photos, detailed description of works and any contracts associated with the work), to avoid further contacts and consequently delays in processing claims. Where a claim is selected for review, caseworkers may return the claim for further information, which will delay the processing of the claim.

Refunds may be held where a claimant has returns outstanding, or payments may be offset against other outstanding tax liabilities.